Avon Products Inc. shifted to a third-quarter profit from a year-ago loss.
In the three months ended Sept. 30, the New York-based direct marketing firm recorded net income of $91.4 million, or 21 cents a diluted share, compared to a net loss of $5.5 million, or 1 cent, in the year-ago period.
Revenues declined 8 percent to $2.14 billion from $2.32 billion in the 2013 quarter, including a 9.1 decline in sales to $2.06 billion.
The EPS result was better than the 17-cent profit expected, on average, by analysts monitoring the company, while the revenue total fell short of analysts’ $2.16 billion expectations.
“We began the year with the expectation that the second half of 2014 would show improvement relative to the first half, and Avon’s third-quarter results are consistent with modest improvement on both top and bottom line,” said Sheri McCoy, chief executive officer. “We saw good results from our EMEA region, while sluggish performance in Brazil contributed to softer results in Latin America.
“Despite the strong headwinds in a number of markets, we continue to make progress on Avon’s turnaround journey,” she said.
Avon felt the full force of currency fluctuation in the quarter as its 8 percent decline in revenues was a 1 percent increase when measured in constant dollars. Beauty sales declined 9 percent but increased 1 percent in constant dollars as well.