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By
Reuters
Published
Jul 30, 2009
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Avon posts lower profit on charges, currency

By
Reuters
Published
Jul 30, 2009

CHICAGO, July 30 (Reuters) - Avon Products Inc (AVP.N), the world's largest direct seller of cosmetics, posted a lower quarterly profit on Thursday 30 July, as the stronger dollar cut into sales overseas and the company spent money to cut costs.



Avon's net profit was $82.9 million, or 19 cents per share, in the second quarter, compared with $235.6 million, or 55 cents a share a year earlier.

Earnings included 19 cents a share in charges related to restructuring programs.

Avon's revenue fell 10 percent to $2.47 billion. Analysts expected $2.43 billion, according to Reuters Estimates.

Excluding the impact of the stronger dollar, which lessens the dollar value of sales outside the United States, sales were up 5 percent, the company said.

The company operates through a network of representatives who sell its products such as Anew skin care and Jillian Dempsey makeup. (Reporting by Brad Dorfman; Editing by Maureen Bavdek)

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