"Our first quarter was broadly in line with our expectations, and we remain confident in our strategic initiatives and the progress against our plan," said Sheri McCoy, Chief Executive Officer, Avon Products, Inc.
McCoy continues, "We are moving into the second year of our three-year Transformation Plan, in which we will continue to build on the robustness of our brand, drive beauty innovation, and invest in initiatives to enhance Representative engagement while ensuring continued cost discipline. Today we are providing full-year 2017 guidance consistent with our longer-term financial goals."
A Few Highlights
During the first quarter 2017, Avon's revenue increased 2% to $1.3 billion, but decreased 1% in constant dollars.
Active Representatives and Ending Representatives, both from Reportable Segments, declined 3% and 1%, respectively.
As part of its Transformation Plan, the Company completed the implementation of a new Representative-facing system in Brazil.
Outlook for 2017
For full-year 2017, including the impact of the first quarter, Avon expects constant-dollar revenue growth in the low single-digits, an adjusted operating margin expansion of 100 to 140 bps over the prior year, and a slightly positive free cash flow -- including the expected $65 million in increased capital expenditures.
Avon these expectations are based on forward foreign exchange rates, which imply modest tailwinds from currency and are underpinned by Active Representative growth in the range of 0% to 1% in the second half of the year.
Avon will webcast a call for its investors, which can be accessed here.