The cosmetics company reported earnings of $31.9 million for the three months ended June 30, down from $61.6 million a year ago, but this offers more stability to the group’s six month 2013 earnings which had been down, but showing promise, in the first quarter.
"Our second-quarter results reflect continued progress in stabilizing Avon's business," said Sheri McCoy, Chief Executive Officer.
Mc Coy accepts that there is still significant work to be done to deliver a sustainable performance in the near and longer term, but is pleased with the progress to date.
“We will succeed by continuing our focus on better serving Avon Representatives, creating a compelling consumer proposition, and simplifying our business to drive both top and bottom line improvements,” she continues.
Despite having endured a tough couple of years, which many believed would be the end for the company, Avon is continuing to gain ground as cost saving measures and a trimmer business structure pay dividends.
According to financial research group Zacks, on top of the cost cutting initiatives, the company is also starting to show sure signs of a recovery in consumer interest for its products, after a continued downturn in its retail sales worldwide over the past two years.
In an effort to streamline the business, the company has closed a number of its divisions worldwide, including operations in Europe and the Asia Pacific region, and has also strengthened its executive structure, with a number of new appointments, including a new CEO, Sheri McCoy.
For the second quarter of 2013, total revenue of $2.5 billion decreased 2 percent, and Avon Beauty sales declined 4 percent, whilst Fashion & Home sales were up 2 percent.
The quarter also included a $79 million charge related to an expected loss on the sale of the Silpada jewelry business back to its co-founders and their families for $85 million, much less than what it paid three years ago.
The company also said that an offer to settle bribery allegations overseas for $12 million was rejected by US authorities; a case that has been ongoing in China since 2008, and has since spread to other countries.