Corporate Sales: $4.8 billion
Beauty Sales: $3.6 billion

Major Products/Brands:

• Avon Makeup Collection; Avon Naturals and Footworks
• Anew, Anew Clinical, Anew Genics
• Clearskin Professional Care and Avon Solutions
• Outspoken and Outspoken Intense by Fergie
• Derek Jeter Driven and Derek Jeter Black
• Hervé Léger Homme, Far Away
• Today, Tomorrow for Her, Haiku Eau

New Products:

• Anew Skin Reset Plumping Shots
• Green Goddess Facial Oil
• Cashmere Complexion Foundation

Comments: 2019 was Avon’s final year as a standalone entity before its assimilation into Natura &Co., which formally occurred in January 2020. Natura now holds 76% of the combined business and projected that as a combined global force spanning more than 6 million representatives, they could reach over 200 million customers and post annual sales of $10 billion.

Avon’s 2019 standalone performance, however, was characterized by a 15% sales dip. The company’s international operations outside of the U.S. (due to the 2016 separation from its North American business), were conducted primarily in 55 countries and territories. Regionally, sales were led by the brand’s Europe, Africa and the Middle East region, where sales fell 14% to $1.79 billion. Sales in Avon’s second most profitable region, South Latin America, were also down 18% to $1.78 billion, followed by North Latin America in a distant third, where sales fell 7% to $751 million.

In 2020 Q1, Avon International’s first full quarter under the Natura &Co umbrella, turned Natura & Co into the No. 1 player in the Cosmetics, Fragrances and Toiletries Market (CFT) in Latin America, and the world’s fourth largest pure-play beauty company. Although net revenue declined 2.4% due to Covid-19 and a reduction in representatives, Natura reported making “great strides” toward progress in its Open Up strategy to stabilize the core business and rapidly set up digital adoption. To that end, the company noted, “The rapid progress in integration leads us to raise our total synergy target, including topline synergies, to $300 to $400 million over the next four years.”

Q1 also saw an increase in representatives’ adoption of digital assets—the number was in the low single digits in 2019 and jumped to over 37%. New digital capabilities included new order-management features in the instant messaging digital brochure and direct-to-consumer shipping, available in 25 markets. Sales via the digital brochure increased nearly five-fold since January 1. Avon also focused on driving the e-commerce channel, which grew over 200% in Q1 versus the same period in the previous year and resulted in e-commerce sales in the UK growing five-fold.

Important launches in the first quarter of this year included the Herstory fragrance in Central Europe, and Anew Skin Reset Shots with patented protinol technology in Europe, both of which outperformed sales estimates.

The company additionally made significant contributions to fight Covid-19 in its markets, donating 411,000 essential items to countries such as Romania, Italy, the UK and Philippines. In May it mobilized its research and development, sourcing and supply chain networks to expedite hand sanitizer production with the goal of producing more than 3 million units to distribute around the world.

2020 Highlights

Jan Ziderveld stepped down as CEO of Avon Products in January 2020, and was replaced by Angela Cretu, who after 20 years of experience with Avon, was tapped to be responsible for the business outside of Latin America and for the oversight of the Avon brand globally.

Looking Ahead

As of Q2 2020, Natura and Avon realized a combined 150% increase in online sales, which the company said included a three-fold increase in orders, a 65% increase in consultant online stores. But that good news was tempered by a 21.6% net revenue loss in comparison to Q2 2019.

Corporate Sales: $5.5 billion
Beauty Sales: $3.7 billion

Major Products: Makeup, Skincare, Fragrance Body Care Hair Care, including:

• mark, ANEW, ANEW Clinical
• ANEW Perfect Skin, ANEW Reversalist, ANEW Ultimate
• ANEW Platinum, Avon True Nutra Effects, Avon Eve series
• Musk Marine, Full Speed Max Turbo, Far Away
• Black Suede, Today, Tomorrow
• Always, Avon Care, Avon Naturals
• Skin So Soft, Advance Techniques

New Products:

• True 5-in-1 Lash Genius Mascara
• K-beauty collection
• ANEW Essential Vitamin C Radiance Maximizing Serum

Comments: After years of uncertainty and restructuring, this year marks Avon’s final appearance in Beauty Packaging’s Top 20 list. In May, a stock swap officially transferred ownership of the beleaguered beauty company to Natura & Co, essentially creating the fourth largest beauty company in the world. Already a powerhouse in the Brazilian cosmetics market, Natura now holds 76% of Avon’s combined business.

Jan Zijderveld, who was appointed CEO in February 2018, acknowledged that the company’s business model was in dire need of modernization and in September 2018, hailed Avon’s next chapter, “Open Up Avon,” as a core strategy of accelerating the company’s pace of change.

The company’s 2018 fiscal year was also marked by a flurry of additional personnel appointments designed to help boost Avon’s technology infrastructure and digital access and ultimately improve the company’s ability to grow digital sales. Earlier this year, Kay Nemoto was appointed to senior vice president chief enablement officer and chief human resources officer, a key role designed to “lead the change management and cultural overhaul underpinning Avon’s transformation.”

In a similar tech vein, in October 2018 the company launched a Personalized Beauty mobile app that enables Avon representatives to take the guesswork out of finding the right shades to complement customer skin tones and types. The app relies on a phone camera and a unique calibration card exclusively available to Avon representatives. The app also helps representatives manage their business easier and faster, while harnessing the power of their own networks through enhanced social sharing capabilities. Key features include latest product and promotion notifications, order placing, easy access to support features including FAQs and Avon contact centers, a sharable link to the instant messaging brochure and a social media hub.

News of Note in 2019

The powerhouse team of Natura and Avon has created a multi-brand and multi-channel beauty group to be reckoned with. The group can connect directly with its estimated 200 million consumers across the world through Avon´s and Natura’s combined 6.3 million consultants and representatives, not to mention 3,200 stores and an expanded digital presence. The combined Group is expected to have annual gross revenues of over $10 billion, over 40,000 associates and be present in 100 countries. And by adding Avon to a portfolio that already includes Natura, The Body Shop and Aesop, Natura & Co enhances its ability to reach and serve different consumer profiles and distribution channels as it expands into new geographies. Natura &Co expects the combination to result in “target synergies” in the range of $150 million to $250 million annually, some of which will be reinvested to further enhance capabilities in digital and social selling, research & development and brand initiatives and to continue to grow the group’s geographic footprint.

After a rough Q1 characterized by missed revenue estimates and a 19% sales decrease in Europe, Middle East and Africa, Q2 saw segment revenue decrease 12%. Average representative sales from reportable segments increased 5%, driven by increases in all segments, and active representatives from reportable segments declined 10%, with decreases reported in all segments, and declined 3% compared to first-quarter 2019.

Total Sales: $5.56 billion
Beauty Sales: 4.2 billion (FY 2017 Beauty Sales: $4.1 billion)

Major Products/Brands:

• Avon True makeup, mark makeup, ANEW skincare,
• Avon Naturals Body Care, and several fragrance brands, all by Avon.

New Products:

• Velvet Collection
• Anew Hydra Fusion collection
• Anew Reversalist Infinite Effects Night treatment cream
• Anew Ultimate Infinite Effects
• Anew Clinical Unlimited Lashes Lash & Brown Activating Serum
• Avon True Nutra Effects collection
• Avon True Color Flawless Foundation
• Advanced Techniques Miracle Densifier
• Eve Duet Sensual Avon
• Encanto Alto Astral and Life Colour fragrances

Avon Products Finds Its Way

Now operating as a fully separate entity from New York-based New Avon LLC, UK-based Avon Products Inc. is finding its way at its headquarters in London.

Overall, Avon Product’s 2017 net beauty sales grew a slim 1% to nearly $4.2 billion, led by skincare net sales of $1.62 billion (+1%), fragrance $1.55 billion (+3%) and color $977 million (-2%). While 2017 revenue was relatively unchanged compared to the prior-year period, partially benefiting from foreign exchange, the company’s constant revenue decreased 2%, which the company attributed to declines in Brazil, Russia and the United Kingdom, partially offset by growth in Argentina and South Africa, as well as to a 3% decline in Active Representatives.

South Latin America proved to be Avon’s most lucrative region in 2017, with a modest increase in total revenue to $2.2 billion, followed by Europe/Middle East/Africa ($2.1 billion), North Latin America ($812 million) and Asia Pacific ($518 million).

News of Note in 2018

Sales in the first quarter of 2018 rose 5% to $1.4 billion; however, active representatives continued to decline 4%. When the company’s second quarter results were announced in August, total revenue decreased 3% to $1.4 billion. Despite indicating that the management team was not yet satisfied with the overall operating results, CEO Zijderveld highlighted Avon’s improved revenue growth in three of its top five markets and “promising trends” across the majority of the rest of its business.

In June, the company announced that it was accelerating its “digital transformation” plans via three initiatives. First, the company launched a fully digitized, mobile-enabled e-interactive brochure, allowing Avon Representatives to connect quickly and effectively with their customers.

Second, the company invested in a new global sales organization to help further the optimized service experience of representatives. Third, the company installed a new global sales team to integrate insight-led digitization. Richard Pinnock transitioned from his role as group vice president for APAC to lead the new team as group vice president global sales.

In August, Avon sold the last of its U.S. factories in Morton Grove, IL, to French pharmaceutical firm Fareva Group. And in September, Avon announced that it was further streamlining to make the company “fit for growth” by cutting 100 U.S. jobs and consolidating U.S. operations into its Suffern, NY facility, after selling its offices in Rye, NY.

Looking Ahead

Zijderveld recently announced an Avon reboot with a growth plan called Open Up Avon. The strategy, dubbed “a cultural transformation,” is focused on rebooting the company’s direct selling strategy, modernizing the brand, unlocking its digital and e-commerce capabilities, and driving a performance culture.

“We have assessed our operations, our markets and value-creating opportunities, and are implementing a plan to make Avon more attractive to beauty entrepreneurs and accessible to more consumers,” Zijderveld said. “Critical elements of the plan are expanding recruiting and retaining more Representatives, capturing our share in fast growth areas, opening our eco-system to more third-party providers, and ensuring we have the right team and execution rigor. We are confident that these efforts can increase shareholder value and position Avon to become the leading digital social selling beauty company.”

Corporate Sales: $5.7 billion
Beauty Sales: $4.1 billion (Skincare: $1.6 billion; Fragrance: $1.5 billion; Color: $997 million)

Major Products/Brands: Color—Avon Makeup Collection; Avon Naturals and Foot Works; Skin Care—Anew, Anew Clinical, Anew Genics, Clearskin Professional and Avon Solutions; Fragrances—Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme, Step into Sexy, Scentini Fragrance Collection, Rare Diamonds, Eternal Magic, Far Away.

New Products: Anew Youth Maximizing Serum, Anew Ultimate Supreme Dual Elixir, Anew Vitale Visible Perfection Blurring Treatment, Big & Daring Mascara, Avon Ultra Matte lipstick, Avon Life for Him and for Her fragrances, Avon Nutra Effects body collection with Active Seed Complex.

Comments: Avon celebrated its 130th anniversary in 2016 and closed out year one in its three-year Transformation Plan, a three-pillared overhaul designed to rejuvenate the company with growth investments, cost reductions and improved financial resilience strategies. To start, the company split its North American business, now referred to as New Avon, and relocated its headquarters and commercial operations to London.

In 2016 Avon aligned its cost structure, achieving $120 million in cost savings, exceeding its target. It also slimmed down its operating model, eliminating redundant regional layers, reduced its corporate center, shifted some of its costs outside the U.S. and began working on supply chain initiatives targeted to optimize its manufacturing capacity and distribution network. The goal is to hit $350 million in savings during the projected three-year transformation plan.

In addition to minding the bottom line, Avon committed to investing in new product innovations and the digital/online technology to support them. In her address to shareholders, CEO Sheri McCoy said the company’s focus has been on its top 40 brands, which account for 80% of its business.

McCoy also emphasized the positives, pointing to 2% constant dollar growth in its beauty category, and +4% in Fragrance, +2% in Color and +1% in Skincare. The balance sheet, however, showed corporate and beauty sales fell 7%. Category-wise, skincare sales also fell 7% to $1.6 billion, fragrance sales declined 6% to just over $1.5 billion, and sales of color cosmetics dropped 7% to $997 million. Beauty accounted for 74% of sales last year, the same as in 2015.

The company made positive gains in Argentina, South Africa, Russia, Mexico and Brazil; however overall sales declined in the key regions of Europe/Middle East/Africa (-4% to $2.1 billion), South Latin America (-7% to $2.1 billion), North Latin America (-8% to $830 million), and Asia Pacific (-11% to $556 million).

Avon additionally acknowledged the ongoing need to shore up its base of about six million representatives who aren’t just the heart and soul of the company, they’re the face of it too. Though the company committed to measures to help amp up its representatives by 1-2%, McCoy admitted Avon had not made the expected amount of progress.

News of Note in 2017

In the first quarter of 2017, Avon saw its sales climb 2% to $1.3 billion, but the number of active representatives fell 3%. Skin care sales increased 6% and fragrance sales rose 4%. Color, however, declined 2%. Overall, beauty sales were up 3% to $970 million.

2017 Q2 results announced in August were less than stellar. Total revenue decreased 3% to $1.4 billion compared to 2016, and the number of active representatives again declined 3%. Amid a poor second-quarter report, the struggling direct seller announced that McCoy will step down as CEO in March 2018.

Corporate Sales: $6.2 billion
Beauty Sales: $4.6 billion

Major Products/Brands: Skin Care, Color Cosmetics, Personal Care, Hair Care and Fragrance brands including Anew, Anew Clinical, Anew Genics, Anew Men, Skin So Soft, Mark, Moisture Therapy, Avon Naturals, Clearskin Professional, Avon Solutions, and Footworks.

New Products: Anew—Skinvincible Day lotion, Anew Clean Illuminating Rich cleansing foam; Avon—Senses Ocean Refreshing Blue shower gel, body lotion and body spray, SuperExtend Winged Out Mascara, Ultra Color Indulgence Lipstick; Fragrances—Fergie Outspoken Party!, Attraction (men and women), Luck La Vie EDP, Prima, Dreams; Mark—Hawaii Five Oh! eyeshadow, Sunset Glow face bronzer.

Comments: Following another disappointing fiscal year, Avon pulled the trigger and pushed the reset button to kick off its fiscal 2015 charting of a “new path” developed to help the company grow its North American business and international markets, according to CEO Sheri McCoy. The solution was a strategic partnership with a significant $180 million capital investment from Cerberus Capital Management LP that effectively split and restructured Avon’s North American Business into two companies.

New Avon LLC is majority-owned (80%) and managed by Cerberus. Cerberus also invested $435 million in Avon Products, Inc. in exchange for an ownership interest of approximately 16.6%. Scott White joined New Avon as chief executive officer in April, and is charged with leading the transformation of the North American business.

Beyond the restructuring, McCoy reported growth in Avon’s foundational categories. “Beauty grew 3% for the year driven by 7% growth in Fragrance and 1% growth in Color,” she said. “Skin care was flat but would have grown low single digits with the exclusion of the divestiture of Liz Earle.”

A team of research scientists from the Avon Skincare Institute (ASI) presented  a new breakthrough in anti-aging skin care at last year’s summer conference of The American Academy of Dermatology.

News of Note in 2016

In 2016 Avon celebrates an extraordinary 130 years in business. The company launched a special website dedicated to the anniversary: www.beautyforapurpose.avon.com. In addition to retelling the company’s humble origins and reaffirming the company’s long-standing commitment that empowers women “to be the CEOs of their own business and control their economic destinies,” the site also includes an excellent retrospective spotlighting the packaging that captured customer curiosity and beauty sales throughout the company’s history.

In April, Avon announced a global partnership with designer Kenzo Takada who, in addition to being celebrated for his fashion designs, is also renowned for his top-selling fragrances that bring together the best elements from both the East and the West. The initial fruits of the partnership focused on the launch of Avon LIFE By Kenzo Takada, a new fragrance line that includes a scent for men and a scent for women set to launch later in 2016.

Looking Ahead

According to data from S&P Global Market Intelligence, shares of Avon Products rose 40% in the month of August 2016 thanks to a boost from higher than projected earnings. Investors indicate this momentum may indicate a renewed sense of confidence in the company which would be a great thing, given all of the struggles it has worked hard on to put in the rearview mirror.

Corporate Sales: $8.9 billion
Beauty Sales: $6.3 billion

Major Products/Brands: Skin Care, Color Cosmetics, Personal Care, Hair Care and Fragrance brands including Anew, Anew Clinical, Anew Genics, Anew Men, Skin So Soft, Mark, Moisture Therapy, Avon Naturals, Clearskin Professional, Avon Solutions, Footworks, Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme.

New Products: Avon Makeup Collection, Avon Big & Daring Mascara, Smooth Minerals, Advance Techniques Frizz Control Lotus Shield, Avon Forever, Avon Ultra Color Indulgence, Anew Vitale, Clearskin Professional.

Comments: Avon’s efforts toward a turnaround continued in 2014, but sales and representatives continued to decline. Overall, while it was the door-to-door company’s third consecutive year of losses, they were able to dig out of their financial debt somewhat with new terms and a new credit facility. The company also strove to get an established management team in place. Globally, according to the direct seller, four Avon lipsticks and two Avon mascaras are sold every second.

Total corporate sales fell 11% to $8.9 billion. Beauty sales, which constitute about 73% of the corporate total, declined 12% (but were relatively unchanged in constant dollars), reaching $6.3 billion. Skin care dropped 13% over the previous year to  $2.6 billion; Fragrance also dipped 13% to $2.1 billion; Color saw the lowest loss at 11%, totaling $1.6 billion (basically flat in constant dollars). The first half of the year proved more challenging than the second. Skin care actually grew slightly in the second half, the first time since 2008. The business remains the most challenged in bringing on additional representatives.

Still, Sheri McCoy, chief executive officer of Avon Products, Inc., remained optimistic, saying, “While progress against our financial goals in 2014 was slower than I would have liked, I am pleased with the sequential improvements we made in several key markets and categories in the second half of the year. We have stronger management teams across our key markets and better discipline in executing consistently against Avon’s core processes.” She added: “Going into 2015, we intend to build on that momentum. However, based on strengthening of the U.S. dollar, we expect the impact of foreign currency on our reported results to be significant. We are working to mitigate as much of the impact as possible. Avon has weathered emerging market cycles in the past and I’m confident we will do so again.”

Geographically during 2014, constant dollar revenue was impacted by net declines in North America and to a lesser extent, Asia Pacific, which were partially offset by net growth in Latin America and Europe, Middle East & Africa. North America continued to experience year-over-year revenue declines, driven by a decrease in Active Representatives. Constant revenue growth in Latin America was primarily driven by Venezuela largely due to inflationary pricing, which was partially offset by declines in Mexico.

Constant dollar revenue growth in Europe, Middle East & Africa was driven by South Africa and the UK, which was partially offset by revenue declines in Russia and Turkey. In Asia Pacific, constant dollar revenue declined as compared to 2013 as growth in the Philippines was more than offset by declines in the other Asia Pacific markets.

For the fourth quarter of 2014, total revenue of $2.3 billion decreased 12%, but increased 5% in constant dollars. Active Representatives were down 4%, while average orders increased 9%. Beauty sales declined 14%, but increased 5% in constant dollars.

News of Note

In January, Avon appointed ex-J. Crew executive James S. Scully to serve as executive vice president and chief financial officer. The company also ceased operations in 16 Caribbean nations, no longer accepting orders from many of the island nations.

With most of its sales coming from developing markets, earlier in this year, Avon was reportedly exploring a sale of its North American operations as a possible way to turn around the struggling unit.

Avon Products sold Liz Earle, its wholly owned, UK-based natural skin care brand to Walgreens Boots Alliance for £140 million in an all-cash transaction.

In June, Avon launched a new fragrance called Amour, represented by award-winning actress Olivia Wilde.

In August, Avon scientists announced what they called an “anti-aging breakthrough,” saying they had solved “a key piece of the skin-aging puzzle.” The team of researchers focused on a transporter protein called dynein, which plays a critical role in carrying nutrients as well as mitochondria, the “powerhouses” within cells, to where they are needed, keeping skin cells productive and functioning optimally.

For 2015, the direct seller says it expects to continue to make progress against its strategic objectives, but faces continuing challenges from negative impact from foreign currency translation. What looms ahead is the potential impact from a pending tax law change on cosmetics in Brazil, called Industrial Production Tax.

Corporate Sales: $10 billion
Beauty Sales: $7.3 billion

Major Products: Direct sell color, fragrance, skincare and personal care products, including Avon Anew, Anew Clinical, Anew Genics, Clearskin Professional and Avon Solutions, Outspoken fragrances by Fergie, Derek Jeter fragrances, Hervé Léger Homme, Step into Sexy, Rare Diamonds, Eternal Magic, Far Away.

New Products: Ultra Color Bold Lipstick, Big & Daring Volume Mascara, Avon Luck fragrance, Anew Clinical Skinvincible/E-Defense Deep Recovery Cream and Multi-Shield Lotion (SPF 50), Avon Papaya Whitening Cleanser, Clearskin Liquid Extraction Strip, Totally Kissable Lipstick, True Color Eyeshadows, Advance Techniques Hair Strengthen and Protect Collection.

Comments: While certainly not an upbeat year for Avon, CEO Sheri McCoy, said 2013 was an important one in the company’s route to a turnaround. But the numbers didn’t necessarily back up the progress made. Total corporate revenue of $10 billion decreased 6%, or1% in constant dollars, from the previous year. Beauty sales declined 7%, or 2% in constant dollars, partially due to unfavorable foreign exchange. Total Beauty sales reached $7.3 billion. Even Active Representatives dwindled 2% although average orders increased 1%.

On the upside, McCoy said that in 2013, the company improved performance in Brazil and Russia, two of its largest markets. She also said Avon’s financial performance and capital structure were in better shape than before. With a continued drive to cut costs, they had managed to achieve about one-third of their three-year, $400 million savings goal. They also exited several small, underperforming markets.

As far as Beauty category performance, 2013 saw a small growth in Fragrance, as well as some progress in Color Cosmetics. Avon continued its drive in skincare where they believe they have good potential for growth, especially due to anti-aging and other “first-to-market” technologies.

Overall, Beauty declined 7%; Fragrance, 4%; Color, 6%; Skincare, 12%; and Personal care, 7%.

Constant dollar revenue was impacted by net declines in North America and Asia Pacific; however, these declines were partially offset by improvements in Latin America and Europe, Middle East & Africa. Growth in Latin America was driven by Brazil and  Venezuela mostly due to inflationary pricing. In Europe, Middle East & Africa, growth was driven by South Africa, Russia and Turkey, which was partially offset by a revenue decline in the UK. North America experienced deteriorating financial results, primarily as a result of the decline in Active Representatives. Asia Pacific’s revenue decline was mostly due to continuing weak performance of Avon’s China operations and operational challenges in the Philippines.
Total Revenue b y Region

Sales in Latin America reached $4.8 billion, 3% lower than the year before due to the unfavorable impact from foreign exchange, including the Venezuelan currency devaluation. On a constant basis, revenue grew 6%.

In Europe, Middle East & Africa, sales declined 1% to $2.9 billion. Avon also closed all operations in France at the end of 2013.

North American sales experienced a dramatic double-digit drop, falling 17% to $1.5 billion. Sales from beauty products declined 19%, due in large part to skincare losses.

Sales also fell dramatically in Asia Pacific, down 16% to $758 million. The decline was driven by the unfavorable results of Avon’s China operations and a decrease in Active Representatives in the other Asia Pacific markets. The region’s revenue was also negatively impacted as a result of Avon’s decision to exit the South Korea and Vietnam markets.

McCoy conceded that the company’s future success depends on their ability to improve financial and operational performance and to fully execute their global business strategy.

During the early part of 2014, Avon signed a deal with its one-time bidder Coty, to distribute fragrances in Brazil through its representatives. The company also formed a partnership with the Greek brand Korres, which granted the direct seller the exclusive right to develop and market Korres products in Latin America.

In June, tennis star Maria Sharapova signed with Avon as the face of Avon Luck, a pair of fragrances for women and men.

But things didn’t turn around as fast as McCoy had hoped. In June 2014, Avon cut 600 additional jobs, after reporting a net loss of $168-million in the first quarter, dragged down again by plunging sales in North America.

At the end of the second quarter, in July, things looked even grimmer, with a 40% decline in quarterly profits. Avon blamed increased competition in key markets such as Latin America and the U.S. Still, McCoy tried to remain optimistic, stating: “As we move to the second half of the year, we continue to expect improved performance.”

The goal of achieving mid-single-digit growth by 2016 hinges on having a strong U.S. market. Improving Avon’s American business is the company’s number-one priority this year, she said.

Just when it seemed things couldn’t get worse came word that Avon’s executive vice president and chief financial officer had resigned effective October 2, 2014. Kimberly Ross had joined Avon in 2011. The news left Wall Street even less confident of a recovery.

Corporate Sales: $10.7 billion
Beauty Sales: $7.6 billion

Sheri McCoy, Avon’s chief executive officer, says the company is making progress toward stabilization.

Major Products: Color cosmetics, skin care, fragrance and personal care products featuring brand names Avon Color, Anew, Skin-So-Soft, Advance Techniques, and Mark.

New Products: Avon Passion, Viva by Fergie, Mega Effects Mascara, Anew Clinical Pro Line Eraser Eye Treatment with A-F33, Anew Genics Treatment Concentrate, Glimmersticks Lip Liner, Avon Totally Kissable, Urban Splatter Nail Enamel, Naturals Spiced Orange & Ginger Body Spray, Advance Techniques Lotus Shield Frizz Control Duo.

Comments: It was somewhat of a wild ride at Avon last year, with a continuing recovery from scandals, a new CEO’s strategies, and stabilizing after rebuffs of multiple buyout offers from Coty. But while sales remained on a downward trend, the fourth quarter showed promise, and things seem to be steadying amid new technology, cost-cutting measures (Avon announced a $400 million cost-saving initiative by 2016), an enhanced managerial team and strong resolve.

Upon the release of its Annual Report, Sheri McCoy, Avon’s chief executive officer, commented: “2012 was a challenging year for Avon, but I’m encouraged to see that the overall business is showing early signs of stabilization. We have a lot of work ahead of us, but I am confident that in 2013, we will see progress against our three-year financial goals.”

Total revenue of $10.7 billion decreased 5%, or was flat in constant dollars. Total Beauty sales, which account for about 72% of business, declined 5%, or increased 1% on a constant-dollar basis, to $7.6 billion. By category, fragrance dropped 4%; color, 6%; skin care, 7% and personal care 6%.

Active Representatives declined 1% and units sold were flat.

McCoy further stated: “We are working with a sense of urgency to tackle near-term issues quickly and address longer-term challenges.”

Some improvement was seen in Latin America, particularly in Brazil, Mexico, and Venezuela, but was offset by net declines in other regions. In Europe, Middle East & Africa, there was a revenue decline in the UK due to weakened economic conditions. Redistricting problems affected the U.S., and Asia Pacific’s revenue decline was primarily due to continuing weak performance of Avon’s China operations.

Latin America contributed the bulk of total revenue—nearly $5 billion—even though total net sales declined from 2011. North America contributed $1.9 billion of total revenue; Asia Pacific, about $902 million, a decline of 4-5%.

Cost-saving measures including exiting a couple of markets, restructuring its supply chain and cutting about 1,500 jobs—all in an effort to save an eventual annual $70 million. Avon also plans to focus on its six million representatives, and provide them with an exciting product portfolio.

Approximately 70% of Avon’s business comes from developing markets, a trend that is expected to continue.

Things were looking up by the fourth quarter. Avon reversed sales declines in top markets like Brazil and Russia, attracted more sales representatives and made headway in cutting costs.

In 2013, Avon continued to boost its top management team. In May, Pablo Munoz, a former Tupperware executive, was named senior vice president and president, North America, responsible for turning around the direct seller’s North American business and returning it to profitability. Just recently, Avon appointed Brian Salsberg as senior vice president, global strategy.

New this month, Avon Passion is touted as the direct seller’s “most luxurious scent ever,” and is packaged in what the company calls its “most ornate fragrance bottle, a faceted deep red sensual design with a studded cap.”

Avon says its new Mega Effects Mascara, six years in the making, is an innovative mascara package, and the Wonderbrush represents a brand new approach to mascara application.

Product innovation—key to sales—continued in 2013 with a number of exciting launches including Avon’s new luxury fragrance, Passion, and its revolutionary new mascara, Mega Effects, with a multi-dimensional brush.

However, innovative products aside, at the end of the second quarter of 2013, things had not improved as much as McCoy might have hoped, as total revenue of $2.5 billion decreased 2%.

Avon Beauty sales declined 4%, or were relatively unchanged in constant dollars. North America Beauty sales declined 14%, driven primarily by skin care.

Still, McCoy said, “Our second-quarter results reflect continued progress in stabilizing Avon’s business. There is still significant work to be done to deliver sustainable performance in the near and longer term, but I’m 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.”

In September, Avon named actress, activist and renowned beauty Olivia Wilde as the face of Avon’s “Today. Tomorrow. Always.” trio of fragrances.

Corporate Sales: $11.3 billion
Beauty Sales: $8.5 billion

Major Products: Skincare, color cosmetics, personal care, hair care and fragrance including Anew, Anew Clinical, Anew Genics, Clearskin Professional, Avon Solutions Avon Color, Jillian Dempsey Professional, Smooth Minerals, Anew Beauty Skin-So-Soft, Avon Naturals, Foot Works, Advance Techniques, Outspoken by Fergie, Mark., Liz Earle, Tiny Tillia.

New Products: Super Drama Mascara, Skin So Soft Bath Oil, Jon Bon Jovi Unplugged for Her and Unplugged for Him, Anew Clinical Pro Line Eraser Treatment, Outspoken Intense by Fergie Fragrance, Anew Genics Treatment Cream, ExtraLasting Makeup, Advance Techniques Frizz Control Lotus Shield.

Comments: Revenues more than doubled to $11.3 billion—the corporate net sales figure for 2011—during former CEO Andrea Jung’s reign, but 2011 also marked her last year as the head of the world’s leading beauty direct seller, and sales are now on a downward trend. Following multiple scandals and news stories—from possible corruption in China to an attempted, but refused, takeover of the company by Coty, Inc., Avon has not always made the front page for its business acumen. Key now to future success is getting the company back on track—and that will be left to its new CEO, Sherilyn (Sheri) McCoy, who joined the team in April. Jung retained the position of executive chairman (she has now resigned). Many other key executives have left the company, while others have signed on to try and improve its course.

Sheri McCoy takes the helm at Avon.

Sales rose 4% in 2011, due mostly to a favorable foreign exchange rate. The number of active representatives fell 1% to 6.4 million. Beauty product sales, which accounted for 73% of corporate revenue last year, rose 5%, although unit sales declined 1%. The company blamed slower-than-expected growth due to weaker macro-economic conditions. Still, all beauty segments reported an increase in dollar sales. Fragrance increased 7%, color cosmetics increased 5%, personal care rose 4% and skincare increased 3%. Anew Genics showed promise as becoming one of the largest skin care launches in Avon’s history.

By region, North American sales were the weakest, falling 6% to $2.1 billion. Unit sales declined 10% and the number of active representatives declined 8% to about 420,000.

Developing markets gave Avon strength. Latin America sales rose 11% to $5.1 billion, while unit sales increased 2% and the number of representatives rose 3%. Sales in Mexico improved 17% and sales in Brazil rose 6%.

Sales in Central and Eastern Europe were flat at nearly $1.6 billion. Units and active representatives declined 6% and 2%, respectively.

Western Europe, Middle East and Africa reported a 5% gain in sales to $1.5 billion. Unit sales increased 1%, while the number of active representatives rose 4%—which is why Avon’s sales rose in the region, according to the company. While the company made headway in South Africa, results were hurt by declines in the UK.

Sales in Asia Pacific fell 4% to $942 million. Last year, the results of Asia Pacific and China were managed as a single operating segment. After years of growth in China, revenue there fell 20% last year, but Avon said it is focused on improving representative productivity, which will hopefully turn things around.

In the fourth quarter, Avon reported gains in mass-market beauty share for the first time in three years.

Avon’s hoping its new Bon Jovi fragrances will be a hit.

Battling issues such as increases in labor and commodity costs, pricing strategies and management problems, in 2011, Avon took on an in-depth assessment of its long-range business plan in order to improve performance, with a focus on long-term sustainable, profitable growth. It is also looking into technological and service model enhancements for its representatives.

While Avon rebuffed Coty and positioned McCoy at the helm, a turnaround is not yet visible on the horizon. For the first quarter of 2012, corporate sales fell 2% to $2.6 billion. Beauty sales declined 1%—color was flat, fragrance and skincare declined 1%, and personal care was down 2%.

In July, the direct seller announced that Jon Bon Jovi would be its newest fragrance partner. The rocker will appear in ads for both Unplugged for Her and Unplugged for Him.

Avon’s second-quarter revenue was no better than its first, and the company took on additional debt. Total revenue of $2.6 billion decreased 9%, or down 1% in constant dollars. Total units declined by 4% and price/mix increased 3% during the quarter. Active Representatives were down 3%.

Avon Beauty sales declined 9%, or were flat in constant dollars. Fragrance was down 8%, color was down 9%, and skincare and personal care both declined by 10%. McCoy stated: “Avon’s second-quarter financial results are not good and they reflect the complex challenges that Avon faces. We are working to stabilize the top-line, improve cost structure and cash generation, and instill a more disciplined culture of accountability.” However, she remained hopeful, adding, “We will also put the consumer and representative back at the center of our business and ensure our associates are engaged and aligned. It will take time, but I am confident that we can turn the business around and reach a point of sustainable growth.”

Setting its sights on developing regions, in August, Avon announced plans to launch more than 300 products across various categories in India this year.

In its efforts to not only rebuild its growth but also its reputation both internally and externally—and its staff—Avon has made several key personnel appointments in the last few months.

At press time, Avon announced that Andrea Jung will step down as executive chairman and board member, effective December 31, 2012, and will continue as a senior advisor to the board. Fred Hassan, currently lead independent director, will succeed Jung as non-executive chairman on January 1. Hassan is a managing director and partner at Warburg Pincus and the former chairman and chief executive officer of Schering-Plough Corp.

Beauty Sales:  $ 7.7 billion
Corporate Sales: $10.9 billion

Major Brands/Products: Fragrance, color cosmetics, personal care and skin care marketed under a number of brands including Anew, Skin So Soft, Advance Techniques and Mark.

New Products: Anew Genics, Anew Solar Advance, Mega Impact Lipstick, Super Extend Mascara, Eternal Magic fragrance, Outspoken by Fergie fragrance, Anew Platinum Night Cream and Serum, Advance Technique Lotus Shield.

Comments: Avon’s new Ideal Flawless liquid foundation was more than four years in the making.

Avon celebrated its 125th anniversary this year, continuing to hold the No. 1 position in direct selling globally, but marked a disappointing performance in 2010, noted by CEO Andrea Jung, who said they were “taking action to get the business back on track as quickly as possible.” A strong first half was followed by a weaker second half negatively impacted by a slowdown in two of the direct sellers’ largest and most profitable markets, Brazil and Russia.

Full-year 2010 total revenue of $10.9 billion was 6% higher than that of 2009.

Beauty accounted for about 71% of Avon’s sales in 2010 (down 1% from the two years prior; fashion and home account for the remainder). In 2010, overall Beauty sales increased 6% over the previous year, favorably impacted by a 4% growth in representatives, and double-digit growth in Fragrance, thanks to Outspoken by Fergie, which became the largest fragrance launch in Avon’s history. Color and Personal Care also grew solidly, while Skincare declined, likely due to mass and value offerings.

Within the Beauty category, fragrance increased 11%, color cosmetics increased 7%, personal care increased 5% and skin care declined 3%. Skin care growth rates benefited slightly due to Avon’s acquisition of Liz Earle Beauty Co. Limited in March 2010.

Geographically, for the year ended December 31, 2010, sales remained strongest in Latin America, with total revenue of $4.6 billion, followed by North America ($2.2 billion); Central & Eastern Europe ($1.6 billion); Western Europe, Middle East & Africa ($1.5 billion); Asia Pacific ($752 million); and China ($229 million).

By country, total 2010 sales in Brazil topped out at $2.2 billion; followed by the U.S. at $1.7 billion.

The amount spent on R&D—primarily in beauty and color cosmetics—grew more than 10% to over $72 million in 2010.

In December 2010, Avon sold its ownership interest in Avon Japan, saying that the planned sale was consistent with its strategy to focus its portfolio and investments on direct selling markets with higher growth potential.

Part of the turnaround plan, which commenced in the first quarter of 2011, is to beef up the management team that had been cut by about 30%.

Sweeping managerial changes marked early 2011, in response to Jung’s orchestrating a financial comeback. The reorganization, the company’s largest since it reduced management layers in 2005, not only added management depth, but strengthened leadership in key target areas. As part of the reorganization, the company consolidated into two major business groups—the Developed Market Group and the Developing Market Group.

Among numerous personnel changes, many of which were internal promotions, some of long-time veteran employees, Kimberly A. Ross was named executive vice president and chief financial officer, succeeding Charles Cramb, who was named vice chairman of Avon’s Developed Market Group. Charles Herington, the company’s former executive vice president, Latin America and Central and Eastern Europe, became executive vice president of Avon’s Developing Market Group. Vanessa Reggiardo was promoted to president of Avon Products’ Mark brand.

Jung and Avon’s global ambassador Reese Witherspoon kicked off a 16-city “Avon Believe World Tour” to celebrate the company’s heritage and women’s empowerment. In conjunction with the tour, a $1 million fund supports a global effort to support women’s domestic violence shelters and agencies in each of the 16 cities on the tour.

According to Jung, restoring growth in skin care is a key priority going forward. In the value segment, the company launched Avon Care—a line of skin and body products targeted for developing markets. In the mass category, Avon Solutions was revamped with new formulas and packaging.

The global direct seller has also had some makeup innovations up it sleeve, recently launching Avon’s new Ideal Flawless liquid foundation, which was reportedly over four years in the making. It uses skin-matching pigments to create “flawless, invisible coverage” for a large variety of skin tones.

In the fourth quarter of 2011, Avon has plans to launch “a ground-breaking new product 10 years in the making, inspired by genetic research on longevity.”

Avon is also focusing on its bread and butter—sales representatives, investing $20 million in 2011 to improve their earnings. Brazil and Russia are top priorities.

In August, Avon opened a new state-of-the-art R&D Center in Shanghai, which is the company’s largest scientific facility outside of the U.S.

Beauty Sales: $7.4 billion for cosmetics, toiletries and fragrance
Corporate Sales: $10.3 billion

Major Products: Color cosmetics—Avon Color and Beyond Color; Skin care—Anew; Bath and body—Naturals and Skin-So-Soft; Hair care—Advance Techniques; Fragrances; Mark.

New Products: Avon—Anew Reversalist, Glossy Delight Lip Juice, Carlos Falchi color collection, U By Ungaro color collection, MagiX Cashmere Finish Foundation, Frizz Control Lotus Shield Anti-Frizz Treatment, Outspoken fragrance, Haiku 5-Piece Fragrance Gift Collection. Mark—Sophistique Give Me a Ring Solid Fragrance Ring.

Comments: Sales started looking more beautiful for Avon in the fourth quarter of 2009.Total revenue of $3.2 billion was 13% higher than in fourth-quarter 2008, and Active Representatives grew 11% with growth in all regions. Beauty sales in the fourth-quarter of 2009 grew 15%, led by gains in color cosmetics (27%), personal care (19%) and fragrance (11%). Units sold increased 4% in the quarter, and beauty units were up 5% versus the previous year. Revenue growth was broad-based across the direct seller’s geographic portfolio. Western Europe and Central and Eastern Europe regions, together, represented 30% of fourth-quarter revenue, while Latin America contributed another quarter of double-digit growth.

Total revenue for full-year 2009 was not as rosy, as $10.3 billion was 3% lower than that of 2008, due to unfavorable foreign exchange and the depressed global economy. Total beauty sales, which accounted for 72% of corporate sales, were down 3% but up 7% on a local-currency basis. Active Representatives grew 9% with growth in all regions. (Part of Avon’s plan during this difficult time was to attract new representatives with the most massive recruiting campaign in Avon’s history; total reps now number over 6 million.)

Units sold increased by 3% and Beauty units increased by 4% versus the previous year. Revenue was strongest in South America ($4.1 billion), followed by North America ($2.3 billion); Central & Eastern Europe ($1.5 billion); Western Europe, Middle East & Africa ($1.3 billion); Asia Pacific ($885 million); and China ($353 million).

In response to weakened consumer budgets, Avon moved rapidly, increasing a number of units in the under $5 value tier, while continuing to protect its mass and masstige offerings.

Approximately 80% of Avon’s revenue is generated from outside the U. S., so when the economic crisis hit, the company faced additional challenges due to foreign currencies. Just off its effective multi-year restructuring plan, the company put forth a new one, in order to counter new difficulties.

Avon’s claims to have 90% awareness around the globe, and says it sells four lipsticks every second. To maintain this position, Avon has increased its focus on innovation and advertising investment at almost triple the rate of 2005. Success is touted across all categories. Its flagship Avon Color brand, with Reese Witherspoon as Avon’s Global Brand Ambassador, has been repackaged and relaunched. New celebrity partners to the company’s fragrance franchise include Courteney Cox, Fergie, and Zoë Saldana. The Anew skin care brand stands as the No. 1 anti-aging skin care brand in the world.

In 2010, Avon has made a number of announcements, adding products from premium hair care to skin care to fragrance.

In June, the company announced a line of premium hair products with new patent-pending technology that aims to smooth frizz similar to a salon treatment. The product, called Advance Techniques Frizz Control Lotus Shield, coincided with the restage of the existing Advance Techniques line.

In August, the direct seller announced that actress Jacqueline Bisset will represent its new Avon Anew Platinum line, a new skin care system developed for women 60 years old and over.

Beauty Sales: $7.6 billion
Corporate Sales: $10.7 billion

Major Products: Color cosmetics—Avon Color and Beyond Color; Skin care—Anew; Bath and body—Naturals and Skin-So-Soft; Hair care— Advance Techniques; Avon Wellness; Fragrances; Mark. New Products: Ultra Color Rich Plumping Lipstick, Supershock Mascara, Anew Clinical Derma-Full X3 Facial Filling Serum, Unscripted, U, Avon Bond Girl 007 and Spotlight fragrances, Ultra Color Rich 24K Lipstick.

Comments: An increased international sales force—up 7% to 5.8 million representatives—and a larger allocation for advertising (overall advertising expenditure of nearly $400 million in 2008 was almost three times the amount invested in 2005) both contributed to Avon’s 8% rise in corporate sales last year, which reached a record $10.7 billion; foreign exchange contributed three percentage points to the revenue growth. Beauty accounted for 72% of net sales in 2008.

Investments in sales representatives and advertising not only helped the world’s largest direct seller strengthen its brand image, it also enabled the company to command higher price points for many of its most innovative products. Avon invested $200 million on its sales representatives, including improving commission structures and creating a program that allows reps to also earn income by recruiting other reps. Approximately 70% of the incremental spending on advertising went to campaigns in Russia, China and the UK.

Revenue grew in all segments, except North America, which was slowed by economic conditions and lack of consumer confidence. However, sales in developing and emerging markets around the globe more than made up for it. Beauty was the driving force in 2008 sales, with a sales increase of 10% in all sub-categories; fragrance grew 9%, color grew 11%, skin care, 10% and personal care, 8%.

Patrick Dempsey 2 features a brown glass bottle with a hint of sage green, shaped to reflect strength and intimacy. The packaging juxtaposes bold orange, deep brown and stark black for a stronger, richer effect.

In comparison, in 2007, Beauty sales increased 15%, with fragrance up 20%, color up 16%, skin care, 6% and personal care, 21%.

The Latin American region topped out as Avon’s No. 1 territory, ringing up sales of $3.9 billion.

Although 2008 sales of Beauty products in North America declined by 1%, the region still ranked second with $2.5 billion.

Central & Eastern European sales reached $1.72 billion. Helping to boost the bottom line were sales in Russia, which grew 8% (attributed to additional reps), as well as growth in other markets in the region, such as Ukraine with a growth of over 20%.

Active representatives also accounted for boosting sales in Western Europe, Middle East & Africa to $1.4 billion, with Italy and Turkey taking the lead.

Asia Pacific accounted for sales of $8.9 million. (Total revenue increased for 2008 due to foreign exchange. Revenue growth in the Philippines of almost 20% was due mostly to increasing representatives.)

China brought in $351 million, owing to an increase in representatives, but partially offset by a lower average order.

In 2008, its final year of a three-year restructuring program, Andrea Jung, Avon’s chairman and chief executive officer said the company had emerged stronger than ever. Cost cutting, innovation and image enhancement were, and continue to be, pronounced goals; the company also focused on developing a smaller range of better performing, more profitable products. Avon’s Global Ambassador, actress Reese Witherspoon, came on board, joined by additional fragrance “stars” including Unscripted by Patrick Dempsey, U by Ungaro and Bond Girl 007. Growth in Skin Care was attributed to the continued strengthening of Avon’s Anew brand, which grew 20% in 2008, reaching total sales of $900 million for this single brand alone.

In February 2009, Avon announced that it expected higher than anticipated savings and benefits —nearly $900 million— from its original corporate restructuring, product line simplification and strategic sourcing, and announced a follow-up restructuring program, targeting annual savings of about $200 million. The original restructuring program is expected to deliver total savings of approximately $430 million by 2011-2012. The company also announced plans to reduce its work force by 7% (3,000 jobs) over the next four years.

Avon reported second-quarter 2009 total revenue of $2.5 billion, 10% lower than that of 2008’s second quarter, but up 5% on a local currency basis as foreign exchange pressured growth by 15 percentage points. Beauty sales in the second quarter of 2009 were 10% lower versus the prior-year period, but increased 5% on a local-currency basis, in which fragrance, color cosmetics, personal care and skin care grew 8%, 7%, 6% and 1%, respectively.

Of the various global regions, secondquarter revenue was positive only in China, where it grew 15% year over year on continued strength of the direct-selling business.

Avon is updating its Anew skin care franchise this fall with the launch of Anew Reversalist, a new anti-aging range targeting women in their 40s.

In September, Avon announced that president Elizabeth Smith had made the decision to leave the company, after five years, “to pursue her long-time leadership aspiration to be a chief executive officer.”

In October, Avon announced it had added to its celebrity portfolio, signing on Black Eyed Peas vocalist Fergie, for a yet-to-be named fragrance due to launch next year.

Beauty Sales: $6.9 billion
Corporate Sales: $9.9 billion

Avon’s limited edition Pro-to-Go Lipstick is sure to wow this holiday season.

New Products: Anew skin care products including Rejuvenate Dial-A-Glow Anti-Aging Moisturizer SPF 15; Fragrances including Bond Girl 007, Patrick Dempsey Unscripted, U by Ungaro for Him and Her, Christian Lacroix Noir and Rouge; Color cosmetics including Marimekko for Avon, In A Wink Instant Eyeshadow Sheets, Pro-To-Go Lipstick; Personal care including Skin-So-Soft Fusions Dual Softening Body Wash.

Comments: Avon’s new advertising and marketing tagline, “Hello Tomorrow,” with actress Reese Witherspoon as the company’s first-ever global ambassador, couldn’t reflect better the company’s turnaround approach. Two years of a restructuring/cost savings plan have elicited positive results, and optimism shines brightly on its future—especially among its more than 5.4 million direct sellers (up 9% in 2007) in more than 100 countries. Company revenue in 2007 increased 13% to $9.9 billion, nearly doubling since Andrea Jung was named CEO in 1999. Beauty accounted for 70% of corporate sales. Beauty revenue increased 15% in 2007, and according to Jung, has more than doubled over the past two years; also in 2007, she noted, the company grew nearly one and a half times the rate of the market overall, driving important market share gains.

With the rebranding and relaunch of its flagship Avon Color line, the company reportedly outperformed the market in the color cosmetics category, with 16% growth. The launches of Rouge and Noir by French designer Christian Lacroix helped fragrance sales rise 20% and not only confirmed the value of targeted collaborations, but set the stage for a shift both in price and brand image. Personal care sales rose 21% in 2007, while skin care increased 6% thanks to new anti-aging breakthroughs in the Anew line and higher price points ($80) for Anew Ultimate Night Cream and Elixir ranges.

In 2007, 13 of Avon’s developing markets grew revenue 20% or more. Brazil, Avon’s second largest market after the U.S., reported revenue of over $1.3 billion and over one million representatives. Revenue for Latin America, including Colombia and Venezuela, jumped 20% in 2007 to $3.3 billion. China experienced breakout growth in 2007; in just a year and a half, Avon has recruited hundreds of thousands of representatives there, and is the only direct-selling company to have been awarded a national license from the Chinese government. In Western Europe, the Middle East and Africa, total revenue increased 16% to $1.3 billion. Sales in Central and Eastern Europe rose 19% to $1.6 billion, with growth mainly attributed to Russia. Asia Pacific reported an increase of 5% to $850.8 million, with a 30% boost from the Philippines. Sales declined in both Japan and Taiwan. North America recorded just a 3% increase in total revenue to $2.6 billion for 2007.

For the second quarter of 2008, strong sales in emerging markets and restructuring and cost-cutting measures paid off as corporate revenue rose 17% year over year to $2.7 billion. Sales of beauty products jumped 19%, and included increases in all categories: color (26%), fragrance (17%), personal care (17%) and skin care (15%), according to Avon. Beauty sales benefited in part from a year-over-year 10% increase in advertising expense, to $103 million. Advertising supported the launch of new products, such as Pro-to-Go Lipstick and Anew Ultimate Eye Contouring System as well as representative recruitment advertising in priority markets.

Operating profit doubled, to $374 million from $187 million, and the company’s operating margin rose to 13.7% from 8% in the year-ago quarter. Net income in the second quarter 2008 was $236 million compared with $113 million in the year-ago quarter. CEO Jung commented, “The second quarter performance is the best that we have delivered since launching our turnaround in late 2005.”

Jung is obviously doing something right—and other corporations are looking to take a byte of her beauty expansion insight: in January, the woman who runs the company that calls itself the “company for women” joined Apple’s male-dominated board of directors—becoming the first woman to sit on the board in 10 years.