Avon Reaffirms Outlook for Third Quarter
U.S. Representative Activity at Normal Levels
Sep 25, 2001
Avon Products, Inc. (NYSE: AVP) today reaffirmed its third-quarter sales and earnings guidance that it issued on September 4.
Avon said it remains comfortable with the consensus estimate for earnings per share of $.44 in the quarter, before the benefit of its recent settlement with Sears and charges for items that had been under consideration.
Avon also said sales in the quarter should increase in the range of 5-6% in dollar terms, as previously expected. Excluding the impact of foreign currency translation, sales should increase 11-12%.
"Our business in the U.S. and around the world is demonstrating the inherent strength of our direct selling system, with sales gains in the third quarter driven by solid increases in units and the number of active Representatives." said Andrea Jung, Avon's chairman and chief executive officer.
"We're very encouraged that our U.S. business has been strong in the aftermath of the recent terrorist attacks," Ms. Jung said. "Representative activity has returned quickly to normal levels, and we remain confident in our estimate of 7% sales growth and 3% order growth in the U.S. in the third quarter."
Avon said that a temporary interruption in U.S. mail deliveries in the days immediately following September 11 caused some delays in receiving orders from Representatives but that order flow was now back to normal. In addition, Avon is encouraging its Representatives to utilize other means of submitting orders, especially the company's greatly expanded Internet capabilities.
"Looking ahead, our 500,000 U.S. Representatives are highly entrepreneurial, and from everything we see, they remain committed to serving their customers and maintaining their way of life," Ms. Jung said. "It's obviously impossible to predict the future impact of the September 11 events on consumer confidence. However, the past two weeks have encouraged us that the resiliency of our Representatives and the personal relationships they have with their customers continue to be powerful competitive advantages, particularly in times of uncertainty," she said.
Avon is scheduled to report 3-Quarter financial results on October 17.
Avon is the world's leading direct seller of beauty and related products, with $5.7 billion in annual revenues. Avon markets to women in 139 countries through 3.4 million independent sales Representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an extensive line of fashion jewelry and apparel. More information about Avon and its products can be found on the company's award-winning web site 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 fluctuations 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, 2000, 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, +1-212-282-5103, or Investors - Carol
Murray-Negron or Renee Johansen, +1-212-282-5320, all of Avon Products, Inc.
Company News On-Call: http://www.prnewswire.com/comp/079575.html
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