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Beauty Sales at Avon Up 16%

Avon Products, Inc. reported that its third-quarter 2007 total revenue grew 14% year over year to $2.3 billion with all six operating regions contributing to the company's revenue growth.

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By: Jamie Matusow

Editor-in-Chief

Avon Products, Inc. reported that its third-quarter 2007 total revenue grew 14% year over year to $2.3 billion with all six operating regions contributing to the company’s revenue growth. Sales of beauty products rose 16%, while units sold increased 8% versus the prior-year quarter.

Net income in the third quarter 2007 was $139 million compared with $86 million in the year-ago quarter. The quarter’s results included $96 million in advertising expense, a 44% increase over prior year, to support the launch of new products as well as representative recruitment advertising in several markets.

The 2007 quarter also included an incremental $37 million of costs for initiatives to improve Avon’s Representative Value Proposition (RVP), including continued implementation of Avon’s multi-level sales Leadership program, increased incentives and the roll-out of a more frequent, three-week selling cycle in the company’s Central and Eastern Europe region.

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