Avon Products Inc (NYSE:AVP) saw its fourth-quarter revenue miss market expectations, reflecting a decline in the number of the beauty products group's active representatives, but adjusted earning surpassed forecasts, helping its shares push higher in pre-market trading.
The NYSE-listed firm said its fourth-quarter revenue was flat at US$1.57mln, a touch below the consensus of US$1.60bn, but adjusted income per share was 12 US cents, beating consensus for 7 US cents, as gross margin rose by 70 basis points.
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The company said the number of Avon’s active representatives who sell company’s products door-to-door, dropped by 2%, primarily due to decreases in South Latin America and North Latin America.
Jamie Wilson, Avon's CFO, commented: "Our top line remains under pressure as we continue to operate in challenging macro and competitive conditions, particularly in our largest markets.”
But, he added: “We delivered improving operating margins in the fourth quarter supported by continued benefit from our ongoing cost savings initiatives.”
In pre-market New York trading, Avon's shares were up 8% at US$2.45.