Avon Products, Inc. (NYSE:AVP) reported a significant decline in revenue during the fourth quarter of 2013 as it continues to lose more active sales representatives in North America. The stock price of the company dropped to its lowest level at $14.23 per share on Friday
Financial results
During the fourth quarter, Avon Products, Inc. (NYSE:AVP) said its total revenue declined 10% to $2.7 billion. The sales of its beauty products fell 11% while its fashion and home products dropped 8%.
The company recorded a $68 million net loss from continuing operations or $0.16 per diluted share compared with the $36 million net loss or $0.08 per share in the year-ago quarter.
Avon Products, Inc. (NYSE:AVP) said its adjusted net income from continuing operations was $151 million or $0.34 per diluted share compared with $154 million or $0.36 per diluted share in the same period in 2012. Its gross margin was 61%.
During the period, the company incurred $17 million operating loss due to the negative impact of non-cash impairment charge related to SMT project, accrual related to government FCPA investigations and CTI restructuring. Its adjusted operating profit was $219 million and adjusted operating profit was 8.2%, a decline of 100 basis points.
For the full year 2013, Avon Products, Inc. (NYSE:AVP) posted $10 billion revenue, down by 6%. Its net loss from continuing operations was $1 million or $0.01 per diluted share compared with a net income of $93 million or $0.20 per diluted share in 2012.
Sales representatives
Avon Products, Inc. (NYSE:AVP) said the total number of its sales representatives declined 5%, but the average orders increased 1% during the fourth quarter.
Avon Products, Inc. (NYSE:AVP) said its active sales representatives declined by 17% in North America, 4% in Latin America,1% in Europe Middle East & Africa, and 19% in Asia.
For the entire year, the company said the number of its sales representatives fell 2% while the average orders increased 1%.
In a statement, Sheri McCoy, CEO of Avon Products, Inc. (NYSE:AVP) said, “Looking back at 2013, we made progress addressing tough legacy issues, identifying and beginning to resolve operational challenges, and rebuilding our management team. Although the second half of the year was impacted by both execution and macro-economic factors, I’m pleased that we are making headway toward our financial goals and Avon’s return to profitable growth .While much work remains to be done, we continue to make progress toward building a better, simpler and more stable business.”
