Avon, which saw its 2014 sales decline, has reported a revenue drop for the first quarter of 2015 totaling 18% to $1.8 billion, while operating losses totaled $38 million. However, revenue increased 1% in constant dollars.
Beauty sales declined 17%, but increased 3% in constant dollars.
Full-year revenue is expected to be "negatively impacted" by currency translations. The strengthening U.S. dollar is playing a part.
"Overall, the first quarter was in line with our expectations despite currency pressures that were greater than anticipated," said said Sheri McCoy, CEO of Avon Products, Inc. "Continuing on the momentum we saw in the second half of 2014, I'm encouraged to see improvement in our Active Representative trends and constant-dollar revenue growth in the majority of our top markets."
Highlights:
- Avon witnessed "strong" growth in Europe, the Middle East and Africa.
- Active Representatives were down 1% year-over-year, but grew from the prior quarter.
- Russia drove Active Representative growth.
- Average orders grew 2%.
- Total units decreased 2%, driven by a decline in North America.
- Price/mix was up 3% during the quarter.
