Avon has reported a Q3 2017 earnings of just $0.03 per share, missing the Wall Street forecast of $0.07 – news that caused shares in the direct sales company to fall 9.3 percent last week.
It will be the fifth consecutive quarter drop for Avon, with the company advising a soft outlook for 2017 due to the poor performance. However, while earnings were falling short, the company’s revenues saw a surprise turn with a 1 percent increase to $1.4 billion.
While the direct sales giant anticipates Q4 to show a slight improvement, it is not thought to be enough to offset the weaker start to the year, with its annual results expected to come in below its 2017 guidance as a result.
Sheri McCoy, Chief Executive Officer, Avon Products, said, “Our third quarter has been a productive period. While we saw mixed results, I am encouraged by the revenue improvement in many of our top 15 markets and the underlying business trends we are beginning to see. Our innovation pipeline is starting to gain traction and we are close to realizing our annual cost reduction milestone. We remain intensely focused on improving our Representative experience, which results in higher engagement and her success.”
Europe, Middle East & Africa reported a revenue rise of 1 percent year on year, dipping 2 percent on a currency neutral basis. Meanwhile South Latin America decreased 1 percent, a fall attributed to a decline in Active Representatives. while North Latin America achieved the highest growth rate, rising 5 percent over the period, thanks to a 1 percent growth in Active Representatives and average orders. Meanwhile Asia-Pacific revenues declined 1 percent, however increased 3 percent in constant dollars.