Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Cosmetics Maker Avon Posts Surprise Loss

Avon Products Inc reported a surprise quarterly loss and a 16 percent drop in revenue as demand fell further in Brazil and China.
Source: Avon
By
  • Reuters

NEW YORK, United States — Cosmetics maker Avon Products Inc reported a surprise quarterly loss and a 16 percent drop in revenue as demand fell further in Brazil and China.

Shares of the pioneer of the direct-selling business model fell 2.3 percent in premarket trading on Thursday.

Avon is trying to reverse a more than four-year decline in sales by selling non-performing businesses, cutting jobs and making new investments in its supply chain.

In March, Avon sold 80 percent of its North America business to investor Cerberus Capital for $170 million.

ADVERTISEMENT

In the first quarter, sales across all its markets fell with South Latin America, its biggest, declining 28 percent.

Sales in Brazil were hurt by taxes levied on cosmetics beginning 2015, which made Avon's products more expensive. In China sales were impacted by fewer representatives selling its products, the company said.

Avon's total revenue fell to $1.31 billion. On a constant dollar basis, revenue rose two percent.

The net loss attributable to the company widened to $165.9 million, or 38 cents per share, in the quarter ended March 31 from $147.3 million, or 33 cents per share, a year earlier.

Excluding items, Avon reported a loss of seven cents per share.

Analysts on average had expected earnings of two cents per share and revenue of $1.29 billion, according to Thomson Reuters.

By: Yashaswini Swamynathan; editor: Maju Samuel.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.


The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.


The Investment Giant Behind Some of Fashion’s Biggest Deals

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections