Avon has reported its results for the first quarter of fiscal 2019. The beleaguered direct sales firm saw revenue drop 14 percent in reported currency (down 3 percent in constant dollars) to US$1.19 billion.
Representative numbers were also down, plummeting 9 percent overall with decreases reported in all segments, and the largest declines hailing from Russia and Brazil.
“We are pleased with the progress that we have made in the first quarter,” said Jan Zijderveld, Avon CEO. “We delivered constant-dollar revenue improvements in three of our four geographical segments, adjusted operating margin expansion of 50 basis points and free cash flow in line with seasonal trends, as we continue to make progress deploying our Open Up Avon strategies.
“In the first quarter, our journey to Open Up Avon progressed, offering More Value, More Access and Improved Productivity for our millions of Representatives and customers. Our relentless focus on revenue growth management, including less discounting and more targeted and effective incentives and promotion management led to a 6 percent improvement in Average Orders and drove overall price/mix up 8 percent across our portfolio. Asia Pacific showed strong growth, as evidenced by expanded customer access and strong e-Commerce sales. Our ongoing focus on training contributed to continued improvement in Representative productivity. We are further reducing our costs, driving efficiencies and simplifying our business.”