Avon Products, Inc. (NYSE: AVP), a globally recognized leader in direct selling of beauty and related products, today announced its results for the quarter ended March 31, 2018.
Jan Zijderveld, Avon CEO, said,
“Avon’s first-quarter results were unsatisfactory and do not represent the underlying potential of the business.
During my first 90 days, I have been deeply engaged in a comprehensive review of the Company’s operations, including on-the-ground visits to many of our top markets where I have met with many of our direct selling Representatives.”
Zijderveld emphasized,
“While we are focused on the formulation of Avon’s longer-term plans, we are already implementing near-term fixes that support the success and satisfaction of our Representatives–starting with actions to improve service delivery.
Our long-term mission is clear, to return Avon to a competitive market position, and we are moving with deliberate urgency to design our turnaround plan.”
Highlights for First Quarter of 2018:
Total Revenue increased 5% to $1.4 billion, or 2% in constant dollars1, both including a 6% reporting benefit due to the impact of adopting the new revenue recognition standard required by generally accepted accounting principles in the United States (“GAAP”)
Active Representatives and Ending Representatives declined 4% and 1%, respectively, largely due to declines in Brazil.
Operating