11.04.15
Avon Products has reported its third-quarter 2015 financial results.
"This was a difficult quarter impacted by currency and other macro pressures, and our financial results were not where we would like them to be," said Sheri McCoy, Chief Executive Officer of Avon Products, Inc. "Given the challenging environment, I'm proud of the progress our teams are making, driving solid top-line performance at the local level and continuing to make improvements in Representative engagement."
Avon's income statement shows that the company's total revenue has declined by 22% to $1.7 billion, and declined 2% in constant dollars.
Certain tax items in Brazil and the divestiture of Liz Earle impacted the year-over-year comparison in the third quarter. Excluding the impacts of these items, constant-dollar revenue would have grown approximately 3%.
Total units decreased 6%, driven by declines in Latin America and North America.
Beauty sales declined 23%, or 1% in constant dollars, negatively impacted by the IPI tax in 2015 discussed above as well as the divestiture of Liz Earle. Fashion & Home sales declined 15%, but increased 3% in constant dollars.
Gross margin was 60.8%, down 110 basis points. Adjusted gross margin was 61.2%, down 80 basis points.
Operating margin was 1.4% in the quarter, down 740 basis points. Adjusted operating margin was 3.2%, down 610 basis points.
Net loss was $697 million, or a loss of $1.58 per diluted share, compared with net income of $92 million, or $0.21 per diluted share, for the third quarter of 2014. Adjusted net loss was $50 million, or a loss of $0.11 per diluted share, compared with adjusted net income of $99 million, or $0.23 per diluted share, for the third quarter of 2014.
"This was a difficult quarter impacted by currency and other macro pressures, and our financial results were not where we would like them to be," said Sheri McCoy, Chief Executive Officer of Avon Products, Inc. "Given the challenging environment, I'm proud of the progress our teams are making, driving solid top-line performance at the local level and continuing to make improvements in Representative engagement."
Avon's income statement shows that the company's total revenue has declined by 22% to $1.7 billion, and declined 2% in constant dollars.
Certain tax items in Brazil and the divestiture of Liz Earle impacted the year-over-year comparison in the third quarter. Excluding the impacts of these items, constant-dollar revenue would have grown approximately 3%.
Total units decreased 6%, driven by declines in Latin America and North America.
Beauty sales declined 23%, or 1% in constant dollars, negatively impacted by the IPI tax in 2015 discussed above as well as the divestiture of Liz Earle. Fashion & Home sales declined 15%, but increased 3% in constant dollars.
Gross margin was 60.8%, down 110 basis points. Adjusted gross margin was 61.2%, down 80 basis points.
Operating margin was 1.4% in the quarter, down 740 basis points. Adjusted operating margin was 3.2%, down 610 basis points.
Net loss was $697 million, or a loss of $1.58 per diluted share, compared with net income of $92 million, or $0.21 per diluted share, for the third quarter of 2014. Adjusted net loss was $50 million, or a loss of $0.11 per diluted share, compared with adjusted net income of $99 million, or $0.23 per diluted share, for the third quarter of 2014.
