Avon reported third-quarter 2011 total revenue of USD 2.8 billion, 6% higher than that of third-quarter 2010. Avon sales increased 8% year over year, with gains in all categories; fragrance, color, personal care, and skincare grew 12%, 9%, 6%, and 2%, respectively.
Income from continuing operations in the third quarter of 2011 was USD 165 million compared with USD 167 million in the year-ago quarter. Adjusted income from continuing operations was USD 168 million compared with USD 178 million in the year-ago third quarter.
Third-quarter 2011 operating profit of USD 279 million was up 7% compared with the year-ago quarter, and operating margin was 10.1%, up 20 basis points year over year. Adjusted operating profit was up 4%, and adjusted operating margin was 10.3%, down 20 basis points from a year ago due to a sharp decline in Brazil.
"The results of the quarter reflect a challenging ERP implementation in Brazil which caused greater disruptions than we anticipated. This significantly impacted our top and bottom line results. In addition, consumer uncertainty amidst a volatile macroeconomic environment across several of our markets further pressured revenue growth. Given the current operating environment, the company no longer expects to achieve the stated targets of mid-single digit revenue growth and 50 to 70 basis points of operating margin improvement in 2011. In light of the changing landscape, we are assessing our long-range business plan and are targeting an operational and financial update at an investor meeting in the first quarter of 2012," said Andrea Jung, Avons Chairman and Chief Executive Officer.