Avon Products 2Q net income jumps

NEW YORK (AP) - Growth in Latin America and stronger sales of beauty products including perfume and color cosmetics fueled a jump in Avon Products Inc.'s second-quarter net income.

The direct seller of beauty and skin care products said Thursday net income rose to $167.6 million, or 39 cents per share. That compares with $82.9 million, or 19 cents per share last year. Excluding costs related to the devaluation of the Venezuelan currency, net income totaled 48 cents per share, compared with 38 cents per share last year.

Analysts polled by Thomson Reuters, on average, predicted net income of 45 cents per share. Analyst estimates typically exclude one-time items.

Revenue rose 8 percent to $2.68 billion from $2.48 billion last year, ahead of analyst expectations of $2.66 billion.

Revenue grew across all categories, with 16 percent growth in perfume and 12 percent growth in color cosmetics.

Avon stepped up advertising during the quarter, spending $97 million, 19 percent more than the prior year, mainly in Latin America. In that region, Avon's largest, revenue rose 16 percent to $1.14 billion, helped by strength in Brazil and Mexico, offset by weakness in Venezuela.

North American revenue fell 6 percent to $546.4 million.

Revenue rose in most other regions but fell 32 percent in China, Avon's smallest region.

About 80 percent of Avon's revenue comes from outside of U.S. borders.

In response to the recession, Avon, based in New York, stepped up recruitment for active sellers and added more under-$5 products to its mix. The company is at the tail end a cost-cutting program. It spent $11 million, or 2 cents per share on the programs, compared to 19 cents per share in the prior-year period.