Avon Products, Inc. reported that first-quarter 2008 total revenue grew 14% year over year (6% in local currency) to $2.5 billion. Sales of beauty products rose 17%. Net income in the first quarter 2008 was $185 million compared with $150 million in the year-ago quarter. Earnings per share were $.43 versus $.34 per share in the prior-year quarter, or 26% higher.
"Again this quarter, we produced solid results on the momentum of our turnaround plan and the strength of our well-balanced geographic portfolio," said Andrea Jung, chairman and CEO, Avon. "Active representative growth accelerated to one of the highest growth levels in many years, 14%. This reflects our investments in the Representative Value Proposition, such as expanding our sales leadership program, increasing sales campaign frequency and improving commissions and incentives to our representatives. Additionally, we continued to benefit from our strength in developing and emerging markets around the globe to more than offset the unfavorable impact of economic softness and service problems in North America.
"With this solid start to the year, and despite the challenges in North America, we remain confident that we can deliver on our 2008 objectives to achieve a full-year operating margin that approaches 2005's level of approximately 14% and revenue growth in line with our long-term target of mid-single-digit growth."
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