NEW YORK — Avon Products Inc. reaffirmed its third-quarter and full-year earnings projections Tuesday and also provided quarterly sales guidance.
For the third quarter ending Sept. 30, the New York-based direct marketing giant said earnings per share should be 53 to 54 cents, which is consistent with the forecast provided July 23 and includes expenses of more than $6 million, or about 1.5 cents a share, for the redemption of a convertible bond. In last year’s third quarter Avon had EPS of 38 cents, which included an aftertax charge of $25.2 million, or 10 cents, for reorganization costs.
Sales in the third quarter are anticipated to grow approximately 12 percent to more than $1.6 billion on the strength of beauty products, as well as a double-digit increase in the number of active representatives and a mid-single-digit rise in unit volume. Quarterly results are expected to be reported on Oct. 28.
“We’re very pleased with how the third quarter is shaping up, and we believe that this will be Avon’s strongest quarter of sales growth since the fourth quarter of 1994,” said chief executive officer Andrea Jung in a statement. “The U.S., our largest market, is returning to healthy mid-single-digit sales growth, and we’re also benefiting from favorable currency tailwinds in key markets.”
For the full fiscal year, Avon said EPS remains on pace to hit the firm’s previous target of $2.60 to $2.65, assuming foreign currencies remain at or near current trading levels. Last year, the company reported full-year EPS of $2.32.
— Dan Burrows
In Defense of Colorants
PARIS — France’s monthly consumer magazine, 60 Millions de Consommateurs, published a feature in its September issue maintaining that some hair colorants not only present an allergy risk, but are also suspected of bringing on cancer. In response, the French Federation des Industries de la Parfumerie swiftly issued a statement entitled “Hair Coloring — a Responsible Industry and Safe Products.” Among its assertions, the Federation states hair coloring has long been the object of numerous studies, yet “none has established the existence of a major health risk for consumers.”
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews