Avon Reaffirms Growth Targets for Third Quarter 2000 and Full Year
Strong Global Beauty Growth Driving Gains
Sep 27, 2000
At an investor conference today, Avon Products, Inc. (NYSE: AVP) reaffirmed growth targets for the third quarter 2000 and the full year.
Andrea Jung, Avon's president and chief executive officer, said that sales in the third quarter 2000 are expected to increase 7% to 8%. Excluding the impact of foreign currency exchange, the company expects sales to be up 10% to 11% in the quarter. Ms. Jung also said that the company remains comfortable with the earnings per share consensus estimate among analysts of $.38 for the quarter.
For the full year, sales are expected to be up in the mid-to-high single digits, and earnings per share are expected to increase in the low-to-mid teens versus full-year 1999, Ms. Jung said.
The sales gains are being driven by strong growth in all beauty categories. Ms. Jung said that global beauty sales in the first nine months of 2000 are tracking 10% ahead of 1999, with color cosmetics up approximately 11%, skin care up 9%, hair care up 20%, and fragrance up 8%.
"We are very pleased with Avon's performance this year," Ms. Jung said. "We see significant strength in our core direct selling business around the world. In addition, investments in our long-term strategies are positioning Avon for continued growth in 2001 and beyond."
Ms. Jung told investors that the company's Business Process Redesign (BPR) program is on track to deliver $400 million in cost savings from 1998-2000. In addition, she said Avon is investing approximately $100 million in 2000 to fund its global growth initiatives.
Avon is the world's leading direct seller of beauty and related products, with $5.3 billion in annual revenues. Avon markets to women in 137 countries through three million independent sales representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Avon Color, Far Away, Rare Gold, Perceive and Avon Skin Care. Avon also markets an extensive line of fashion jewelry, apparel, gifts and collectibles. More information about Avon and its products can be found on the company's award-winning website http://www.avon.com/.
SOURCE: Avon Products, Inc.
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