Avon Products Inc. (NYSE: AVP) reported its first-quarter financial results before the markets opened Thursday. The company said that it had a net loss of $0.10 per share and $1.3 billion in revenue, versus consensus estimates of $0.01 in EPS and revenue of $1.34 billion. The same period of last year reportedly had a net loss of $0.07 per share and $1.31 billion in revenue.
Active Representatives declined 3%, with decreases in all segments except North Latin America, which was relatively unchanged. Also the average order increased 2%, with growth in all segments except Europe, Middle East & Africa, which declined.
Back in January, the company initiated a three-year “Transformation Plan” in order to enable it to achieve the long-term goals of mid-single-digit constant-dollar revenue growth and low double-digit operating margin. The plan has three goals: invest in growth, reduce costs in an effort to continue to improve cost structure, and improve financial resilience.
In terms of the guidance for the second quarter, the company expects to see revenue growth in the low single digits and an operating margin expansion of 100 to 140 basis points. The consensus estimates call for $0.09 in EPS and $1.44 billion in revenue for the coming quarter.
Net cash used by operating activities of continuing operations was $80 million for the quarter. On the books, Avon cash and cash equivalents totaled $560.0 million, down from $654.4 million at the end of December 2016.
Sheri McCoy, CEO of Avon, commented:
Our first quarter was broadly in line with our expectations and we remain confident in our strategic initiatives and the progress against our plan. We are moving into the second year of our three-year Transformation Plan, in which we will continue to build on the robustness of our brand, drive beauty innovation, and invest in initiatives to enhance Representative engagement while ensuring continued cost discipline. Today we are providing full-year 2017 guidance consistent with our longer-term financial goals.
Shares of Avon were last seen down 16% at $3.89 on Thursday, with a 52-week trading range of $3.52 to $6.96.
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