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.
