Boston, MA 05/02/2014 (wallstreetpr) – One of the chief manufacturers in the beauty and allied industry, Avon Products, Inc. (NYSE:AVP) operate towards providing advanced products and services in the cosmetics, skin and personal care services. Recently Avon s phasing rough currents form the industry as it is grappling with various lawsuits and slashed sales and revenue. Thus, Avon is critically setting up its strategy for reviving its strong results.
Announcement of 1Q2014 Results
CEO of Avon, Sheri McCoy, remarked that the performance of the company in the first quarter is not up to the expectations of the stakeholders and industry. However, the company has still made significant progress despite critical hindrances affecting adversely its financial results. Lastly, on a positive note he also said that AVON would strategies towards the development of Avon towards profitable and stronger growth.
Avon Products, Inc. (NYSE:AVP) registered its total revenue as $2.2 billion i.e. a decrease of 11% as compared to the same period in 2013 and beauty sales declined by 12%. The beauty sales of the company declined by 12% and Fashion & Home sales as 9%. Avon registered gross margin for its first quarter as 56.2% and operating loss as $51 million. The company registered the effective tax rate as 18.6% and net loss from continuing operations as $167 million. Further, net cash for operating activities accounted for $13 million as compared to $117 million in the first quarter of 2013.
Payment of $135 million for settlement
Avon Products have recently declared low earnings for the 1Q2014 results. Apart from the set back faced on the quarterly result, it has also been slammed by a huge financial loss in a settlement suit. Avon recently settled a federal case under FCP Act. Avon Products, Inc. (NYSE:AVP) along with the quarterly result disclosed the settlement deal stuck by it in the first quarter. The law firm announced the total sum for resolving the dispute filed against the Avon Company as $135 million. Avon has faced multiple failures and losses in its first quarter and is still grappling with the same. However, after the disclosure it is moving towards revamping its strategies for reviving strong growth.