By  on October 27, 2006

NEW YORK - Andrea Jung, chairman and chief executive officer of Avon Products Inc., outlined a new strategic plan to clean house and bolster profitability by slimming down the direct-seller’s product assortment.

Called Product Line Simplification, the initiative is designed to reduce the size of its offering by a range of 25 percent to 40 percent to allow the company to focus more resources on less product.

Citing expenses from its restructuring program, Avon reported on Friday that third-quarter net earnings fell 47 percent. For the three months ended Sept. 30, net income was $86.4 million, or 19 cents, compared with $163.8 million, or 35 cents, in the year-ago period. Overall revenue increased 9 percent to $2.1 billion.

By region, sales in North America dipped one percent to $570.2 million with a 2 percent decline in active representatives. Latin American sales surged 28 percent in U.S. dollars to $707.5 million, fueled by 40 percent top-line growth in Brazil, and sales in China grew 9 percent to $49.3 million.

Revenue in the Asia-Pacific region dropped 3 percent in U.S. dollars to $201.3 million.


For complete coverage see Monday's issue of WWD.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus