Avon Products Inc.posted a $36.5 million loss for the quarter, though sales were slightly up.
The loss narrowed significantly from the prior-year period, when it was $165.9 million. Avon posted a 1 percent sales gain to almost $1.3 billion for the quarter, up from $1.28.
“Our first quarter was broadly in line with our expectations and we remain confident in our strategic initiatives and the progress against our plan,” said Sheri McCoy, chief executive officer. “We are moving into the second year of our three-year transformation plan, in which we will continue to build on the robustness of our brand, drive beauty innovation, and invest in initiatives to enhance Representative engagement while ensuring continued cost discipline. Today we are providing full-year 2017 guidance consistent with our longer-term financial goals.”
Avon said that it is on track to achieve $230 million in cost savings, in line with its transformation plan.
For the quarter, active representatives declined 3 percent, declining in all geographies except North Latin America. Average order increased 2 percent, offset by declines in Europe the Middle East and Africa.
For the full year, Avon projects constant-dollar revenue growth in the low single-digits and operating margin expansion of between 100 and 140 basis points.