Avon Products Inc. ended the first year of its multiyear restructuring effort on a high note, delivering a 9 percent increase in revenue in its fourth quarter.
A hefty increase in advertising spending fueled revenue growth in the quarter ended Dec. 31 to $2.62 billion from $2.40 billion in the year-ago period. Net income remained flat at $184.1 million, or 41 cents a diluted share, from $183.2 million, or 40 cents a share.
For the year, net income slid 44 percent to $477.6 million, or $1.06 a diluted share, from $847.6 million, or $1.81 a share, on revenue that gained 8 percent to $8.76 billion from $8.15 billion in the year-ago period. In 2006, Avon increased its advertising spending by 83 percent to $249 million over the prior year, outpacing original plans to increase levels by50 percent.
For complete coverage see tomorrow's issue of WWD.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"