Avon Products Inc. (AVP) reported a first-quarter net loss to Avon of $13.7 million or $0.03 per share, compared to profit of $26.5 million or $0.06 per share last year. Total revenue decreased to $2.48 billion from $2.58 billion last year. Adjusted profit for the quarter was $111.5 million or $0.26 per share.
Avon Beauty sales declined 5%, or 1% in constant dollars. On a reported basis, fragrance grew 1%, while personal care, color and skincare declined 3%, 6% and 12%, respectively. On a constant-dollar basis, fragrance increased 6% and personal care was unchanged, while color and skincare declined 2% and 9%, respectively.
First-quarter gross margin was 62.1%. Adjusted gross margin was 62.5%, 160 basis points higher than the prior-year quarter, primarily due to lower freight costs, as well as lower material costs, including the benefits from productivity initiatives.
On average, 15 analysts polled by Thomson Reuters expected the company to report profit of $0.14 per share for the quarter. Analysts' estimates typically exclude special items. Analysts expected revenue of $2.51 billion for the quarter.
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