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Shares of the pioneer of the direct-selling business model
fell 2.3 percent in premarket trading on Thursday.
Avon is trying to reverse a more than four-year decline in sales
by selling non-performing businesses, cutting jobs and making
new investments in its supply chain.
In March, Avon sold 80 percent of its North America business to
investor Cerberus Capital for $170 million.
In the first quarter, sales across all its markets fell with
South Latin America, its biggest, declining 28 percent.
Sales in Brazil were hurt by taxes levied on cosmetics beginning
2015, which made Avon's products more expensive. In China sales
were impacted by fewer representatives selling its products, the
company said.
Avon's total revenue fell to $1.31 billion. On a constant dollar
basis, revenue rose 2 percent.
The net loss attributable to the company widened to $165.9
million, or 38 cents per share, in the quarter ended March 31
from $147.3 million, or 33 cents per share, a year earlier.
Excluding items, Avon reported a loss of 7 cents per share.
Analysts on average had expected earnings of 2 cents per share
and revenue of $1.29 billion, according to Thomson Reuters
I/B/E/S.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Maju Samuel)
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