Avon Revenue Falls Short as Sales Representatives Drop Out

LONDON, United Kingdom — Avon Merchandise Inc missed estimates for quarterly income on Thursday because it had fewer representatives to promote its merchandise in a few of its important markets, with Europe, Center East and Africa seeing the worst dip in gross sales.

London-based Avon, which is being purchased by The Physique Store proprietor Natura Cosmeticos SA, has been battling falling gross sales for 4 years, hit by stiff competitors in addition to a drop within the variety of gross sales representatives.

In a bid to show itself round, the 133 year-old firm has been attempting to reboot its direct promoting enterprise mannequin operations beneath the “Open up Avon” initiative, which entails coaching and retaining its gross sales representatives popularly known as “Avon Women.”

Regardless of the efforts, the variety of energetic representatives, who go door-to-door promoting Avon cosmetics and lotions, dropped 10 % within the quarter.

Income fell throughout board. In Europe, Center East and Africa gross sales fell 15 %. Gross sales in South America, which the corporate breaks into “South Latin America” and “North Latin America,” had been additionally down.

Complete income fell 13 % to $1.17 billion, lacking analysts’ common estimate of $1.24 billion, in response to IBES information from Refinitiv.

Internet loss attributable to the corporate narrowed to $19.5 million, or 6 cents per share, within the quarter ended June 30, from $36.1 million, or 9 cents per share, a 12 months earlier.

Excluding gadgets, the corporate earned 6 cents per share, beating analysts estimate of three cents per share.

By Soundarya J; Editors: Arun Koyyur and Saumyadeb Chakrabarty.