Avon North America Sees Rare Profit in Second Quarter

Sales at Avon Products Inc. (AVP—NYSE) continued to decline in the second quarter, but the beauty company’s lagging North America division posted its first quarterly profit in several years, Avon said Thursday.

Second-quarter revenue fell 17 percent to $1.8 billion, weighed down by currency pressures in several foreign markets. On a constant-dollar basis, overall sales remained flat, with growth in Russia and the Philippines offset by declines in Brazil, China and the U.S.

The New York-based company reported adjusted earnings of 11 cents a share, surpassing the 7 cents predicted by analysts but dropping 20 cents from a year ago.

Heavy cost-cutting initiatives are paying off for the company in North America, where it saw a modest profit for the first time since the first quarter of 2012. Despite an improving bottom line, the number of Avon sellers in North America fell 16 percent from the second quarter of 2014. Overall, the brand’s salesforce shrunk by 2 percent from a year ago.

Avon said its expectations for the full year remain the same. The company forecasted modest constant-dollar revenue growth, with continued negative effects from currency exchange rates.

Advertisements

Mannatech Million Dollar Club Tops 200 Associates

Dallas-based Mannatech is marking a growth milestone with the latest addition to its Million Dollar Club, made up of associates whose earnings have topped $1 million. The social entrepreneurship brand said Thursday that its Million Dollar Club has now reached 200 members.

Though North America accounts for nearly half of Mannatech’s revenue, some of the company’s newest million-dollar achievers reflect its growth in international markets, where total revenue increased nearly 4 percent in 2014. The skincare and nutrition brand, which ties its business to fighting childhood malnutrition through the Mission 5 Million (M5M) program, said that recent additions to the Million Dollar Club hail from Australia, Japan and Korea, as well as the U.S.

“Very few companies in our industry have ever generated 200 millionaires,” Mannatech President Al Bala said in a statement. “We have a commitment to providing the best products and support to help our Associates build businesses that last.”

The company’s current power products include the Generation Uth Skin Care System and the detoxifying Refresh and Rejuvenate Purification Program, which unite multiple products in a targeted regimen. Mannatech also reported the successful introduction of its MannaBOOM Slimsticks immune supplement into the brand’s emerging markets.