Avon Sees Mixed Results In 2Q 2013; Plans To Drive Growth And Reduce Costs

Avon Products reported net sales of $2.45 billion, an operating profit margin of 8.2 percent, and net income margin of 1.39 percent in the quarter ending June 30, 2012. Beauty products account for more than 70 percent of the company's net sales. Reported revenues from the segment declined 2 percent despite a 2 percent increase in constant dollar revenue driven by higher average orders. Fashion products, which include fashion jewelry, watches, and apparel, accounted for 16.8 percent of sales in the quarter, down from 17.1 percent in the same quarter of 2012. Sales for the quarter reached $415 million, down from $430 million in 2012 and $511 million in 2011. Home products, including housewares and leisure products, accounted for 10.7 percent of net sales during the quarter, higher than 9.3 percent in the previous year.