Oriflame Hits Profit, Beats Revenue Expectations in First Quarter

Oriflame’s (ORI—Stockholm) first-quarter sales rose 10 percent in local currency and dipped 1 percent in euros to €305.8 million*, from €307.8 million a year ago, the Swedish cosmetics maker said Wednesday.

The results reflect a 19 percent increase in productivity among Oriflame consultants, countered by a 9 percent decrease in total consultants, management said. The skincare and wellness categories logged the strongest performance in the quarter.

On a regional basis, Asia and Turkey posted the largest gain, with local currency sales up 31 percent. Latin America revenue rose 13 percent, while Europe and Africa edged up 2 percent in local currency. CIS (Commonwealth of Independent States) revenue stabilized, reversing a negative sales trend that followed economic and political uncertainty in the region.

The Switzerland-based company cleared a profit of €10.7 million, or 19 cents a share, compared to €11.2 million, or 20 cents a share, in the first quarter of 2015. Operating profit was €21.1 million versus the year-ago €17.2 million.

On average, analysts polled by Reuters had predicted operating profit at €21.1 million and net sales at €293 million.

“The underlying business and financial performance is encouraging, although we continue to be heavily impacted by persistent currency headwinds and deteriorating macro across many of our regions,” said CEO Magnus Brännström. “Efficiency initiatives are ongoing and are delivering desired results.”

The company also said it is still seeking a reason for local authority visits to its offices in Moscow, which took place in April, and remains fully transparent to the authorities.

Following its annual shareholder meeting on May 17, Oriflame announced a dividend of 40 cents a share, to be paid out in two installments set for November 2016 and February 2017.
*At the time of this writing, €1.00 was equal to $1.12.

Direct Selling News Unveils Industry’s Top Companies in Seventh Annual DSN Global 100

In recognition of those companies that lead the way in offering an unparalleled opportunity for individuals to start their own businesses, Direct Selling News today unveiled its seventh annual DSN Global 100, an exclusive ranking of the top revenue-generating companies in direct selling.

The DSN Global 100 is a collective effort to show the impact and potential of the $182.8 billion direct selling channel. Unveiled online at DirectSellingNews.com and featured in the June issue of Direct Selling News magazine, this year’s Global 100 companies hail from 17 countries and represent aggregate revenue of more than $82 billion.

The DSN Global 100 tells a story of impressive growth in 2015, exhibited by the fact that 20 companies surpassed $1 billion in annual revenue,” said Lauren Lawley Head, Publisher and Editor in Chief of Direct Selling News. “These exceptional companies represent not only corporate staff, but millions of lives impacted by the products and opportunity they offer.”

Many direct selling companies had an incredible year of growth and success in 2015. For the first time, 20 companies each reported annual revenue of $1 billion or more. For the fourth consecutive year, Ada, Michigan-based Amway claimed the No. 1 rank, with $9.5 billion in revenue. Avon, Herbalife, Vorwerk and Infinitus rounded out the top five on this year’s list.Best Places To Work 2017

DSN also presented a regional subset of the Global 100: The North America 50, which was first introduced in 2015. As its name implies, the North America 50 ranks the most significant players in one of the world’s largest direct selling markets.

The annual event celebrating the Global 100 took place on April 7, 2015, at the Omni Hotel in downtown Dallas. During the dinner and awards ceremony, DSN also presented its Bravo Awards for excellence. Wellness and lifestyle brand Le-Vel received the Bravo Growth Award for its extraordinary 254 percent year-over-year growth, amounting to revenue of $349 million in 2015. Magnus Brännström, CEO and President of Switzerland-based Oriflame Cosmetics and keynote speaker for the evening, received the Bravo Leadership Award for leading his company to annual revenue of $1.35 billion amid a period of great economic and geopolitical turmoil in many of its top markets.

DSN created the Global 100 list to acknowledge the successes of individual direct selling companies and provide a clear picture of the magnitude of the industry. In its seventh year of undertaking this project, DSN continues its commitment to create a fair ranking that will showcase a transparent industry, thus providing credibility and consumer confidence as well as research support for those seeking information on direct selling companies.

Oriflame CEO Talks Potential Expansion into U.S., Brazil

Expansion into the United States and Brazil could come in the not-too-distant future for Oriflame, the Swedish cosmetics maker that currently counts Russia as its largest market.

The Swiss company’s CEO, Magnus Brannstrom, who will keynote the DSN Global 100 Celebration in April, told Reuters that Oriflame is looking to enter the two major markets within a few years. In 2014, Brazil was the fifth-largest market for direct sales, according to the latest data from the World Federation of Direct Selling Associations. The market accounted for 7 percent of global revenue, trailing only the U.S. and Asia-Pacific powerhouses China, Japan and Korea.

The focus on new markets comes as Oriflame seeks to recover from turmoil in Russia and Ukraine, another key market. Brannstrom said he is “cautiously optimistic” about 2016, after the company’s mid-February report that local currency sales in the first quarter were up 9 percent from a year earlier. Management last month released fourth-quarter profits that beat expectations and discussed bringing back a dividend in the fourth quarter, after cutting the payout for the past two years.

As the company eyes the U.S. and Brazil, emerging markets will continue to drive growth in the long term, with China or India likely surpassing Russia as Oriflame’s biggest market, said Brannstrom. Turkey and Mexico also are top markets for the company, which sells its beauty products through more than 3 million Consultants worldwide.

Natura Named One of the World’s Most Ethical Companies

For the past decade, the Ethisphere Institute has recognized companies that lead the world in ethical business practices and standards. This year, Brazil’s Natura Cosméticos has once again secured a spot on Ethisphere’s list of the World’s Most Ethical Companies.

The program aims not only to showcase forward-thinking organizations, but also to highlight the connection between good ethical practices and good performance. Ethisphere reports that, on a financial basis, the companies on its list historically have outperformed their peers.

“Companies that demonstrate leadership in areas such as citizenship, integrity and transparency create greater value to investors, communities, consumers and employees, thereby solidifying a sustainable business advantage,” Timothy Erblich, CEO of the Ethisphere Institute, said in a statement.

Natura has graced every World’s Most Ethical Companies list since 2011, as well as the inaugural 2007 list. The seller of cosmetics and personal-care products is the only Brazilian honoree in this year’s crop, and one of only four companies in the Health & Beauty industry. In all, the 2016 list names 131 companies from 21 countries, with more than 45 industries represented.

The vetting process is centered on Ethisphere’s “Ethics Quotient”—a proprietary rating system that evaluates companies in the areas of ethics and compliance programs, corporate citizenship and responsibility, culture of ethics, governance, and leadership, innovation and reputation. Honorees are selected for promoting good ethics internally, empowering managers and employees to make good choices, and shaping industry standards through their efforts.

Mary Kay Attracts Increasingly Young, Diverse Salesforce in 2015

Mary Kay Inc. reports an increasing number of young women starting their own Mary Kay businesses. Women ages 18-34 accounted for 47 percent of new consultants in 2015, according to statistics released by the cosmetics company.

“These young women are tech-savvy and digitally connected. They’re looking for flexibility and not a 9 to 5, one-size-fits-all position,” Mary Kay’s Vice President of U.S. Marketing, Sara Friedman, said in a statement. “A Mary Kay business can be customized to each person’s individual goals, and our company’s established social media presence and leading-edge digital technology have also proven to be attractive business-building tools.”

Friedman’s sentiments echo the findings of Amway’s 2015 Global Entrepreneurship Report, an in-depth look at the state of entrepreneurship around the world. Conducted in 44 countries, the survey found that starting a business is most appealing to those under 35 (65 percent), with independence and self-fulfillment being the top motivators. In the 35-49 demographic, 58 percent expressed the desire to start a business, followed by 44 percent of respondents over 50.

All told, more than 325,000 people signed up last year to sell Mary Kay’s skincare and cosmetics lines. The Addison, Texas-based company reports that new consultant sign-ups have exceeded 300,000 for 15 consecutive years.

As Mary Kay’s salesforce skews younger, it also grows more diverse. In 2015, 51 percent of new consultants identified as Latino, Asian or African American—groups that now make up 33 percent of Mary Kay’s total salesforce. Drilling down, the company found that Latinos accounted for 35 percent of last year’s recruits and 22 percent of the wider salesforce.

Avon 39 Concludes with $8.7M Walk to End Breast Cancer

This weekend 3,500 women and men walked the streets of New York City in the final leg of Avon 39 The Walk to End Breast Cancer. During the two-day event, participants from 48 states raised $8.7 million in support of breast cancer research and services.

Avon 39 New York was the last of seven walks held from April to October in cities across the U.S. Formerly known as the Avon Walk for Breast Cancer, Avon 39 refers to the 39.3 miles—split into marathon and half-marathon distances—that participants cover throughout the weekend.

The New York walk concluded at Pier 84, where Avon CEO Sheri McCoy congratulated the participants, dubbed 39ers, and presented grants to 10 local organizations. Also on hand was Avon Global Brand Ambassador Fergie, who launched her latest Avon fragrance, Outspoken Party!, at a livestreamed Beauty for a Purpose event held Monday.

“As this year’s Avon 39 series comes to a close in New York, we couldn’t be more grateful for all 3,500 39ers that united together throughout this memorable weekend with one common goal: to eliminate breast cancer,” McCoy told the crowd. “The grants distributed today will help us do just that. I’m honored to have the opportunity to give them to the doctors, researchers and other medical professionals who will use these funds to help change and save lives.”

The Avon Foundation for Women selects local breast cancer organizations to receive Avon 39 funds at the close of each walk. To be eligible, organizations must commit to providing their services to all, regardless of insurance status, demographic background or ability to pay. Since Avon introduced the walks in 2003, participants have raised approximately $590 million to fund breast cancer research and education, as well as assistance for families battling the disease.

Belcorp Named a World’s Best Multinational Workplace

Peruvian beauty giant Belcorp appears alongside household names such as Microsoft, American Express and Marriott in a new ranking of the World’s Best Multinational Workplaces. Great Place to Work, a global research and consulting firm, surveyed employees and management to discover the priorities of today’s worker and identify the top 25 multinational companies.

In its second consecutive year on the list, Belcorp landed the No. 12 spot. The company employs more than 10,000 at its headquarters in Lima, Peru, and in seven additional markets across Latin America. Belcorp also has signed on more than 850,000 independent sellers, called Beauty Advisors, to market its cosmetics, fragrance and skincare products.

For consideration as a World’s Best Multinational Workplace, companies must appear on at least five national Best Workplaces lists and have at least 5,000 employees worldwide. Additionally, at least 40 percent of the company’s workforce must be based outside its home country. The 2015 World’s Best, led by No. 1-ranked Google, represent 236 subsidiaries across 47 countries.

According to a report accompanying the list, two primary characteristics distinguish this year’s leaders from the rest. The first is employee pride—both in where one works and in the work accomplished, as well as the impact that work has on the community. Employees also prioritized the sense of camaraderie created by a fun, familial workplace.

Tupperware Tops Quarterly Estimates with $62M Profit

Tupperware Brands Corp. (TUP—NYSE) said Wednesday that second-quarter profit had exceeded expectations, despite revenue figures that dipped below Wall Street estimates.

Net income for the second quarter was $62 million, up 30 percent from a year ago. On a per-share basis, the Orlando, Florida-based company reported a profit of $1.23, versus 93 cents in the prior year. On average, analysts had forecasted earnings of $1.17 per share. Adjusted earnings were $1.21, down 18 percent in dollars but up 13 percent in local currency.

Quarterly revenue totaled $588.9 million, coming in just under the $589.8 million estimated by analysts. Emerging markets accounted for 67 percent of sales, with strong performances from Brazil, China, the Middle East and North Africa.

The kitchenware and cosmetics seller said its salesforce increased 3 percent versus a year ago to 3 million. In the U.S. and Canada, Tupperware recorded a 14 percent increase in new consultants.

For the current quarter, the company forecasts earnings of 69 cents to 74 cents per share. Full-year earnings expectations are in the range of $4.42 to $4.52 per share.

Avon Posts Earnings Miss on Weakening Domestic Sales

Avon Products Inc. (AVP—NYSE) posted first quarter results on Thursday amid reports the company is considering a sale of its North American business. Earnings fell below Wall Street estimates as domestic revenue continued to decline and the strong dollar overshadowed growth in foreign markets.

Quarterly revenue dropped 18 percent to $1.8 billion, a 1 percent increase in constant dollars. North America revenue was also down 18 percent, hurt by the market’s 17 percent decrease in active representatives. Overall, the company’s representative count was down 1 percent from 2014, though up on a sequential basis.

Earlier this month, The Wall Street Journal reported that Avon is exploring options to hasten a turnaround, including a possible sale of its deteriorating North American business. CEO Sheri McCoy addressed the media attention at the beginning of Avon’s earnings call on Thursday. She said the company aims to provide sustainable, profitable growth while creating value for its shareholders and opportunity for its representatives, and declined to comment further.

Excluding some items, earnings came in at 4 cents a share, a 67 percent decline from last year. Analysts had predicted earnings of 7 cents a share in the period. Diluted losses were 33 cents a share versus 38 cents a year ago. The results reflect a higher adjusted tax rate of 67.9 percent, compared to 46.3 percent in the first quarter of 2014.

The cosmetics maker reported constant dollar growth in all foreign markets, with EMEA leading the way at 9 percent over the prior year. Management said currency pressures were higher than anticipated in the quarter.

via Avon Posts Earnings Miss on Weakening Domestic Sales — Direct Selling News.

Rodan + Fields: A Prescription for Change

by Karyn Reagan

Left: Student participants in buildOn, an inner-city education and service program, speak during a “Jobstacle Course” led by employees at Rodan + Fields’ headquarters.

Right: BuildOn students from an Oakland, California, high school were treated to a day of learning with workshops on resume writing as well as mock interviews to help them prep for job opportunities.


Click here to order the March 2015 issue in which this article appeared or click here to download it to your mobile device.


At Rodan + Fields, transformation is not just skin deep as they support programs helping educate underprivileged youth.


Company Profile

Founded: 2008
Headquarters: San Francisco
Executives: President and CEO Lori Bush; Co-Founder and Chairman Amnon Rodan
Products: Cosmetics and personal care


Amnon RodanAmnon Rodan
Lori BushLori Bush

While at Stanford University Medical Center in the early 1980s, Dr. Katie Rodan and Dr. Kathy Fields forged a friendship for the same reasons most girls do, but they were also drawn to each other for a practical reason—there just weren’t too many women in the program. After graduation, they each started their own thriving dermatology practices, but the friendship proved lasting and together they have become recognized experts in their field, co-authored two books, and created products and companies that are now household names. “Their goal is to create products that bring the dermatological experience out of medical practice and into the hands of consumers,” says Amnon Rodan, Co-Founder and Chairman of Rodan + Fields as well as Katie’s husband.

The women’s first experience with selling products was the creation of the highly successful acne treatment product, Proactiv Solution™. Since that time, the anti-aging skincare market has grown exponentially, and Katie and Kathy researched and developed a line of products they now market through their company, Rodan + Fields. “In 2002, we created the brand and started selling the skincare line through high-end department stores,” says Rodan. “Within six months, our products caught the eye of Estée Lauder, who offered to purchase our company, so we sold it to them. But in 2007 we felt it was time to buy it back and offer the products through a different channel. Our vision was so much bigger than what traditional retail could offer.”

After studying the various marketing methods available that best served the skincare industry, the distribution channel that rose to the top was direct selling. “We bought the company back in 2007, reopened it in 2008 as a direct selling company, and it has been the best decision we’ve ever made,” says Rodan. “In our first year we did $3 million in business, and now, just six years later, we finished 2014 with $329 million in sales and 75,000 Consultants.” Rodan + Fields also has accumulated five DSA awards since 2008, including the ETHOS award for product innovation in 2014.



Seventy-five high school students from Oakland, California, affiliated with buildOn, took part in Rodan + Fields’ Jobstacle Course, a day of learning their way through the obstacle of job hunting.


A Better Way

Rodan explains that the main reason they chose direct selling was because it was, in their opinion, the best … Click to see the full story at Direct Selling News.