Avon sees revenue slide across all fronts in 1Q
NEW YORK (AP) — Avon's first-quarter loss widened, stung by a volatile currency situation in Venezuela, but weak revenue across all regions as well.
Profit and revenue fell short of Wall Street expectations.
Avon, which has seen steady share declines for more than five years, has been attempting a turnaround that focuses on cutting costs, leaving unprofitable markets and streamlining operations.
For the three months ended March 31, the New York beauty products company lost $168.3 million, or 38 cents per share. That compares with a loss of $13.7 million, or 3 cents per share, a year earlier.
Taking out a charge tied to Venezuela's new foreign exchange system and other one-time items, earnings from continuing operations were 12 cents per share.
Analysts predicted earnings of 21 cents per share, according to a FactSet poll.
Revenue fell 11 percent to $2.18 billion from $2.46 billion, with beauty and fashion and home sales declining. Wall Street was calling for revenue of $2.2 billion.
Beauty sales dropped 12 percent in the quarter, while fashion and home sales were down 9 percent.
Avon Products Inc. has recorded weak sales at home and abroad.
The company reported declining revenue across all regions in the first quarter, led by a 22 percent revenue dip in North America. Revenue fell 17 percent in the Asia Pacific region and dropped 11 percent for Europe, the Middle East and Africa. Latin American revenue slipped 7 percent.