Avon Products Beats Profit Expectations, Sales Match

Avon Products Inc. reported Tuesday second-quarter earnings of $33.0 million,or 6 cents a share, compared with $28.8 million, or 7 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 7 cents, beating the FactSet consensus of 2 cents. Revenue fell to $1.40 billion from $1.54 billion, matching the FactSet consensus of $1.40 billion. Revenue fell in all major geographic regions, including a 5% decline in North America, a 12% drop in South America and a 2% decline in Europe, Middle East and Africa. As part of the three-year transformation plan announced in January, the beauty products company said it has identified $70 million of savings to be realized in 2016. "We continue to make steady progress on a number of fronts: improving pricing discipline; driving additional cost out of the business; and, continuing to build our brand and enhance the representative experience," said Chief Executive Sheri McCoy. The stock, which was still inactive in premarket trade, has tacked on 2.7% year to date, while the S&P 500 has gained 6.2%.