Avon rings up rising 2nd-quarter net income

AP News
Posted: Jul 28, 2011 9:38 AM
Avon rings up rising 2nd-quarter net income

Cosmetics seller Avon Products Inc.'s second-quarter net income rose 23 percent, helped by higher revenue in Latin America, its largest region.

The results fell slightly short of analyst expectations but they marked the second straight quarter of improvement for the direct seller as two trouble spots, Russia and Brazil, continued to recover.

Avon said Thursday that net income rose 23 percent to $206.2 million, or 48 cents per share, from $167.6 million, or 39 cents per share last year.

Revenue rose 9 percent to $2.86 billion. Analysts expected earnings of 50 cents per share on revenue of $2.88 billion, according to FactSet.

North America continued to be a weak spot, with revenue down 7 percent to $508.4 million. But revenue in Avon's largest market, Latin America, rose 19 percent to $1.35 billion. The company made nearly half of its quarterly revenue from that region.

Revenue rose in most other regions, as well, including Central and Eastern Europe, Western Europe, the Middle East and Africa, but fell in Asia Pacific.

Two weak spots for the company in the past, Russia and Brazil, both reported higher sales, although units sold fell slightly in Russia.

Revenue from the company's beauty products like makeup and perfume rose 8 percent to $2.04 billion. Jewelry and accessories revenue, including Silpada, a jewelry seller the company bought last year, rose 10 percent to $511.1 million.

The company continues to expect mid-single-digit revenue growth in the second half of the year.

Avon is based in New York.