Avon announced that it was buying jewelry retailer Silpada for $650 million in an effort to expand its jewelry business. Silpada is a direct seller of sterling silver jewelry in the U.S., Canada and the U.K. Silpada makes more expensive jewelry than Avon, with prices ranging from $12 to $279, with an average of $64. Avon said Silpada will continue to operate as a standalone business with its existing 32,000 independent sales representative.
Avon announced that its Q1 2010 earnings were $43 million, down 64% from the previous year's quarter. The large decline was due to currency devaluation in Venezuela, which caused the comany to incurr a 66.1% tax rate. Sales for the quarter increased by 14% and the number of active sales representatives increased by 6%.
Avon confirmed the administrative leaves of absence for four employees pending the outcome of an internal ethics investigation regarding its business in China. The voluntary internal investigation was started in June 2008.
AVP reported that its Q4 2009 earnings were $269.4 million or 62 cents per share, up 16% from $232 million or 54 cents per share in Q4 2008. The gain ni net income was attributed to a 13% gain in total revenues. However, analysts were expecting an earnings increase of 67 cents/share.
Caris & Company upgraded BBBY from above average to buy.
AVP announced that its Q3 2009 earnings were $156 milllion or 36 cents per share. This down 30% from the prior year quarter where earnings were $222 million or 52 cents per share. Despite having 10% more people sell its products, the company's net revenue fell 4% due to the strong dollar.
AVP announced that its second quarter earnings fell 65% due to a strong dollar and hefty restructuring charges, both an addition to the slowing demand for beauty products due to the recession. Avon recorded a profit of 38 cents per share, which beat analysts' prediction for income of 34 cents per share.
The company blames foreign exchange pressures and the impact of the global recession causing consumers to go for cheaper products.
AVP's reported net earnings of $232 million ($.54 EPS) in Q4 2008, up 80% year on year from the Q4 2007. For the full FY2008, AVP's net earnings were up 69% to $875 million ($2.04 EPS). Both net earnings increases may be attributed to the cost cutting and restructuring initiatives AVP has been implementing in the past year.
In Q3 of 2008, AVP's total revenue grew 13% to $2.6 billion compared to Q3 of 2007; notably, sales of beauty products increased by 15%. Net income in Q3 2008 was $223 million, compared to $139 million in the prior-year quarter. Growth of beauty product sales overall may be attributed to the 11% year-over-year increase in advertising spending, which totaled $106 million, to support the launch of new beauty product lines.
Avon reported net income of $235.6 million, or 55 cents per share, more than double the $112.7 million, or 26 cents per share, it reported a year ago. Analysts were expecting 47 cents per share. The company's results were driven by growth in Eastern Europe and Latin America.
As part of restructuring plans avon plans to cut more jobs by 2011 and expects savings of more than 700 million.
Avon reported a 25% in Quarterly Profits due to restructuring initiatives costs.
Net income rose and revenue increased by 9% in third quarter reports.
