Avon Q2 net income slides 70%

Avon Products has issued disappointing results for the second quarter of 2012; total revenue amounted to $2.6bn, a decrease of 9% while unit sales declined by 4%. Active representatives were also down by 3%. Fragrance, colour and skin care/personal care sales declined by 8%, 9% and 10% respectively.

Countries that contributed to the sales dip included Brazil, down 19% due to increased competition and decreased demand; Turkey, down 29%; and China, which saw sales slide 21% due to greater than expected challenges during the company’s transition to a direct selling business in the area.

Net profit meanwhile plunged 70% to $61.1m, down from $206.2m in the prior year period.

“Avon’s second quarter financial results are not good and they reflect the complex challenges that Avon faces,” conceded the company’s new ceo, Sheri McCoy. “We will also put the consumer and representative back at the centre of our business and ensure our associates are engaged and aligned. It will take time. But I am confident that we can turn the business around and reach a point of sustainable growth.”