Avon Beauty Sales Climb 19% On Increased Ad Spending

  • July 31, 2008
Citing an increase in its ad spending, Avon reported higher sales and earnings for the second quarter, with beauty products doing especially well. Total revenue gained 17% to $2.7 billion, while sales of its beauty products jumped 19%. Net income more came in at $236 million, more than double the $113 million reported in the year-ago quarter.

"The second quarter performance is the best that we have delivered since launching our turnaround in late 2005," the company says.

Within the 19% gain in beauty sales, the company saw increases in each segment, with color up 26%, fragrance 17%, skin care 15%, and personal care 17%. In part, the company says those gains came from a 10% increase in advertising expense for the quarter, to $103 million, supporting such launches as Pro-to-Go Lipstick and Anew Ultimate Eye Contouring System.--Sarah Mahoney



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