Avon on Track to Achieve 2000 Sales and Earnings Targets
Sep 6, 2000
Avon Products, Inc. (NYSE: AVP) said today the company was on track to achieve its previously stated target for earnings-per-share growth in the low to mid teens for 2000 and that sales were continuing to track ahead of its mid-single-digit growth target for the year.
"2000 is shaping up as a year of very solid performance in our worldwide direct selling business," said Andrea Jung, Avon's chief executive officer. "The significant investments we are making to strengthen the Avon brand are clearly starting to pay off," she said.
Ms. Jung said Avon expects to invest an incremental $100 million in 2000 to fund its growth strategies, about $60 million of which should be spent in the second half of the year.
Commenting on the third quarter outlook, Ms. Jung said sales are expected to be 7-8% ahead of the prior year and earnings per share should be within the current range of analysts' estimates.
"The U.S. continues to deliver solid results, in line with our expectations of mid-single digit sales growth. Profits should be up in the same range, even after substantial investments in strategic initiatives," Ms. Jung said.
"Internationally, our portfolio of operations is strong, with Latin America expected to show double-digit sales and profit increases, despite economic weakness in Argentina, one of our major markets. The Pacific region should also be up solidly from 1999, while Europe is expected to be down slightly from the exceptionally strong performance last year, in part due to weaker European currencies," Ms. Jung said.
"We remain confident in the underlying strength of our core business and in our strategies to build Avon's customer base over the long term," Ms. Jung said.
Ms. Jung indicated that Avon continues to make progress in implementing major new initiatives, including the launch later this month of its new "eRepresentative" Internet site in the U.S.; the development of a new Avon brand for sale at specially designed "store-in-store" retail outlets; and the launch next year of a health and well-being product line for women, including proprietary vitamins and nutritional supplements developed by Roche Pharmaceuticals.
Ms. Jung is scheduled to present an overview of these and other initiatives at an investor conference later today hosted by Prudential Securities in Boston. Her remarks will be broadcast live on Avon's website beginning at 2:15 p.m. Eastern time.
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, Women of Earth 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/.
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
Statements in this release, which are not historical facts or information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's reasonable current assumptions and expectations. Such forward- looking statements involve risks, uncertainties and other important factors which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations. Such important factors include, among others, the following: general economic and business conditions in the Company's markets; the Company's ability to implement its business strategy; the Company's ability to achieve anticipated cost savings and profitability targets; the impact of substantial currency exchange devaluations in the Company's principal foreign markets; and the effect of legal and regulatory proceedings and restrictions imposed on the Company or its operations by foreign governments. Additional information identifying such important factors is contained in the Company's Form 10-K report for the year ended December 31, 1999, filed with the S.E.C. The Company undertakes no obligation to update any such forward-looking statements.
SOURCE: Avon Products, Inc.
Contact: Media - Brian Martin, 212-282-5103, or Investor - Renee
Johansen, 212-282-5320, both of Avon
Company News On-Call: http://www.prnewswire.com/comp/079575.html or fax,
800-758-5804, ext. 079575
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