The stock Avon Products Inc. (NYSE: AVP) edged higher by more than 15 percent during late trading hours yesterday, after the corporation released robust earnings results for the second quarter of the current fiscal year. During the given period, its earnings per share hit $0.07 beating the analysts’ forecast of $0.02. Meanwhile, its revenue came in at $1.43 billion, also topping the $1.41 billion estimate of analysts.
“Our second-quarter results came in slightly above our expectations, driven by operating performance that was better than anticipated. We also saw some modest easing in foreign currency pressure,” stated Avon CEO Sheri McCoy regarding the latest development.
The company’s sales in the Europe, Middle East, and Africa (EMEA) region dipped 2 percent on a year-over-year basis to clock in at $520.9 million, while its South Latin America sales plunged 12 percent to $535.7 million on a year-to-year basis. On the other hand, North Latin America and Asia Pacific sales tumbled by nearly 5 percent to $224.4 million, and 10 percent to $141.9 million, respectively.
When it comes to the number of representatives who actively sell Avon products, the figures inched higher by 1 percent on a year-over-year basis. During the second quarter, the average order revenue rallied by 4 percent on a year-over-year basis amid favorable pricing.
During the month of March, the US international manufacturer and direct selling corporation opted to reduce its workforce by 7 percent, which is equivalent to nearly 2,500 jobs. Moreover, it also decided to transfer its headquarters to the United Kingdom. Avon aims to do this once it has completed its sale of its North American operation to Cerberus Capital Management LP.
The cosmetics, perfumes, and accessories seller said that regardless of the Brexit, its management still plans to push through with its plan to move the head office of Avon to the United Kingdom. Furthermore, it anticipates that the relocation of the headquarters will be accomplished by the end of the current year.
The CEO of Avon Products pointed out that the exposure of the company to the effects of Brexit is low because its largest market is the Latin American region.
“There will be some level of consumer anxiety that can result in economic disruption […] I’m confident the UK team will be able to manage through the current environment,” stated Ms. McCoy.
As of the time of writing, the AVP stock is changing hands at $4.76, up by 14.42 percent or 0.60 points. Currently, its market capitalization stands at 2.12 billion.