Avon Reports ‘Unsatisfactory’ First-Quarter Results

In announcing Avon Products, Inc.’s results for the quarter ended March 31, 2018, Jan Zijderveld, Avon CEO, said, “Avon’s first-quarter results were unsatisfactory and do not represent the underlying potential of the business. During my first 90 days, I have been deeply engaged in a comprehensive review of the company’s operations, including on-the-ground visits to many of our top markets where I have met with many of our direct selling representatives.”
 
Zijderveld emphasized, “While we are focused on the formulation of Avon’s longer-term plans, we are already implementing near-term fixes that support the success and satisfaction of our representatives–starting with actions to improve service delivery. Our long-term mission is clear, to return Avon to a competitive market position, and we are moving with deliberate urgency to design our turnaround plan.”
 
Total Revenue increased 5% to $1.4 billion, or 2% in constant dollars, both including a 6% reporting benefit due to the impact of adopting the new revenue recognition standard required by generally accepted accounting principles in the United States (“GAAP”).