Aug 2, 2018
Avon posts surprise loss, shares fall 8 percent
Aug 2, 2018
Cosmetics maker Avon Products Inc reported a surprise quarterly loss on Thursday, hurt by a trucker strike in Brazil that delayed shipments, and fewer sales representatives across the board, sending its shares down 8 percent in premarket trading.
Sales in south Latin America, which includes Brazil, fell 8 percent to $516.1 million in the second quarter.
Active Representatives, or sales representatives who go door-to-door direct-selling its cosmetics and creams, declined 4 percent for the second straight quarter.
Net loss attributable to the company narrowed to $36.1 million (£27.5 million), or 9 cents per share, in the quarter ended June 30, from $45.5 million, or 12 cents per share, a year earlier.
Adjusted net loss was $7.8 million, compared with a profit of $3.29 million estimated by Wall Street analysts.
Excluding one-time items, Avon reported a loss of 3 cents per share, missing analysts' average estimate of breakeven, according to Thomson Reuters I/B/E/S.
Total revenue fell 3 percent to $1.35 billion, missing analysts' estimate of $1.39 billion.
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