Avon Reports Third-Quarter Total Revenue Up 14%

CNN Money:

"Avon Products, Inc. today reported that third-quarter 2007 total revenue grew 14% year over year (8% in local currency) to $2.3 billion with all six operating regions contributing to the company's revenue growth. Sales of Beauty products rose 16% and Active Representatives increased 10%. Units sold increased 8% versus the prior-year quarter. Net income in the third quarter 2007 was $139 million compared with $86 million in the year-ago quarter. Earnings per share were $.32 versus $.19 per share in the prior-year quarter, representing a 68% increase. The quarter's results included $96 million in advertising expense, a 44% increase over prior year, to support the launch of new products as well as Representative recruitment advertising in several markets. The 2007 quarter also included an incremental $37 million of costs for initiatives to improve Avon's Representative Value Proposition (RVP), including continued implementation of Avon's multi-level Sales Leadership program, increased incentives and the roll-out of a more frequent, three-week selling cycle in the company's Central & Eastern Europe region."