NEW YORK - profit in first quarter of the seller of cosmetics Avon Products Inc. more than tripled on higher selling prices and growth in Latin America.
Avon gains and revenues beat expectations. Shares of the company increased by 6% trade Tuesday morning.
Investors were also were reassured that two large markets for Avon, Russia and the Brazil, has shown signs of recovery after having fought for several quarters, while Avon said there is more work to do.
"We focus squarely on the restoration of growth in the Brazil and the Russia in the second half", said CEO Andrea Jung.
Avon, based in New York, said Tuesday that its net income increased by 143,6 million, or 33 cents per share, in the quarter ended March 31.
Excluding discontinued operations and non-recurring items, net income reached 37 cents per share. That is $ 42.5 million, or 10 cents per share, in the same quarter last year. Analysts expected earnings of 32 cents per share, according to FactSet.
An increase of 16% in Latin America revenue helped total revenue increase of 7% 2.59 billion, on a par with analyst expectations. Excluding the effects of a dollar low, income increased by 4%.
Mexico and the Venezuela were particularly strong in Latin America, helped by the growth of independent vendors.
Avon is about 80 percent of its revenues outside North America, which remained low. Income declined by 2%, but it would be down 10 percent, excluding the acquisition of direct Silpada jewelry seller.
Shares of Avon increased $1.72, or 5.8 31.29% $. The stock has traded between $25 and $only in the 52 weeks.
No comments:
Post a Comment