NEW YORK (AFX) - Avon Products Inc., a direct seller of cosmetics and beauty-related items, said Thursday its third-quarter profit declined 47 percent, as the company increased spending on advertising and restructuring initiatives.
Quarterly profit fell to $86.4 million, or 19 cents per share, from $163.8 million, or 35 cents per share, during the year-ago period.
Revenue gained 9 percent to $2.06 billion from $1.89 billion last year, with beauty products sales up 10 percent, helped by a 16 percent increase in skin-care sales.
Analysts polled by Thomson Financial had predicted a higher profit of 24 cents per share on revenue of $1.99 billion.
Advertising spending nearly doubled to $66 million, up $32 million from last year. During the quarter the company recorded $40 million of costs related to a restructuring move to streamline inventory.
The company also had a one-time charge of $21 million related to resolving a dispute about value-added tax in Britain.
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