Beauty products sales show double-digit growth at Avon
01 May '07
3 min read
Avon Products Inc reported that first-quarter 2007 total revenue grew 9% year over year (6% in local currency) to $2.2 billion with all six operating regions contributing to the company's revenue growth. Net income increased in the first quarter 2007, to $150 million, or $.34 per share, compared with $56 million, or $.12 per share, a year ago.
Andrea Jung, chairman and CEO, commented, "We are pleased with the strength and geographic balance of our first-quarter performance. While still in the midst of our multi-year turnaround, we are making good progress against all points of our plan."
Active Representatives rose 4%, and units sold increased 4% versus the prior-year quarter. Sales of Beauty products recorded a third-consecutive quarter of double-digit growth, increasing 10% (7% in local currency), led by personal care up 17%, fragrance up 12%, color cosmetics up 9% and skin care up 6%.
Avon said that in the first quarter the company increased advertising to $71 million, or 80% above the level of a year ago, to fund the launch of "Hello Tomorrow," Avon's first global brand campaign as well as new product introductions such as Anew Alternative Intensive Eye Cream and Avon Color Ultra Color Rich Lipstick.
The company also invested approximately $15 million incrementally to enhance the value proposition for its Representatives through continued roll- out of the Sales Leadership program, increased incentives, web enablement and distribution offree sales brochures to Representatives.
marketing@alchempro.com
