Strong Beauty Sales Growth for Avon

Posted on July 30, 2010 @ 08:06 am

Avon Products, Inc. has reported second-quarter 2010 total revenue of $2.7 billion, 8% higher than that of second quarter 2009. Constant dollar sales rose 7% as foreign exchange contributed 1 percentage point to growth. Beauty sales in the second quarter of 2010 were up 9% versus the prior-year period, and increased 7% on a constant dollar basis. Active Representatives grew 5%. Total units and Beauty units both rose 1%, and price/mix rose 6%.

Andrea Jung, chairman and CEO, remarks, "Avon delivered another healthy performance in the second quarter, including strong revenue growth fueled by continuing investments in our brand and our channel, in line with our long-term strategic growth plan. We are also very pleased with the improving operating margin and strong increase in earnings per share. In addition, we ended the quarter with improved operating cash flow resulting from our ongoing efforts in this area."

Avon's Beauty sales growth of 9% included gains in all categories: fragrance, color cosmetics, skin care and personal care grew 16%, 12%, 4% and 3%, respectively. Constant dollar growth of 7% in Beauty was driven by 15% growth in fragrances, 9% growth in color cosmetics, 2% growth in skin care and 1% growth in personal care.