Avon Products, Inc., a globally recognized leader in direct selling of beauty and related products, today announced its results for the fourth quarter and fiscal year ended December 31, 2017.
Highlights for the Fourth Quarter
- Total Revenue was relatively unchanged at $1.6 billion; Declined 2% in constant dollars
- Active Representatives and Ending Representatives declined 2% and were relatively unchanged, respectively
- Operating Margin increased 150 bps to 8.3%; Adjusted1 Operating Margin increased 250 bps to 9.8%
- Diluted Earnings Per Share From Continuing Operations of $0.17; Adjusted Diluted Earnings Per Share From Continuing Operations of $0.12
Jan Zijderveld, Avon CEO, said, "I am excited to be joining such a special business at this important chapter in the company's history. Very few brands have Avon's brand recognition, extensive global reach and operate in attractive beauty channel categories. In a world where trust in companies is becoming a scarce commodity, our Representatives' relationships with their consumers has never been more relevant or compelling."
Jamie Wilson, Avon CFO, remarked, "Our top line remains under pressure as we continue to operate in challenging macro and competitive conditions, particularly in our largest markets. We delivered improving operating margins in the fourth quarter supported by continued benefit from our ongoing cost savings initiatives. Importantly, we continued to strengthen our cash position, enhancing the financial flexibility necessary to fund priority investments."
Zijderveld went on to say, "With the support of the Board of Directors, and the reality of our current performance, I am taking a fresh look, diving deeply into our business, starting with spending time in our key markets to gain a full picture of the operating climate as a basis to improve performance. I am committed to accelerating the pace of change and to positioning Avon for success."