Avon 1st QTR 2012 Earnings Report
Today, the venerable MLM and global giant Avon reported 1st Qtr 2012 earnings, which were down a total of 2% compared to this quarter in 2011. The total revenue for the company came in at $2.6 billion dollars for the quarter, and total number of representatives were down 2% as well.
As reported on the Avon Company Site:
Kimberly Ross, Avon’s Executive Vice President and Chief Financial Officer said: “While our first-quarter operating performance remained challenged, we are making progress toward addressing some of our operational and cost-cutting opportunities. With Sheri McCoy now on board, we are confident that her broad leadership experience and skills in managing large, complex, global organizations will help drive Avon’s future success. We look forward to communicating further with investors about our future growth strategy at the appropriate time.”
With all of that said, what do we at think this bodes for the venerable MLM Company. A couple things you can read from this.
1) No need to panic, while total revenues WERE indeed down, but operating profit was $72 million dollars.
2) They have a new CEO on board, Sheri McCoy, who comes with a wealth of experience in associated businesses. This is such a huge thing, as they appear to be making changes at the top after so many years of the same kind of leadership.
3) They are still expanding overseas, namely in Asia, which will continue to drive growth overall for the company.
4) In terms of their North American Operations, we are indeed still in a down economy, and people do tend to “try MLM’s” when times are tough and they are considering other options, this time period being no different.
So, despite the fact that the 4th quarter was rough as well, they do appear to be taking positive measured steps to keep things going from a financial perspective, which can only be good for distributors.
What do you think about their financial news? Leave a comment on what you think below.