In over a hundred countries, Avon is a leader in beauty and a
trusted name in direct selling. But that's only the beginning.
More and more, you'll find Avon in kiosks and corner stores... in
fashion and in fitness... on the web and on your wavelength.
Avon is the world's leading direct seller of beauty and related
products, with $6.0 billion in annual revenues. Avon markets to
women in 143 countries through 3.5 million independent sales
representatives. Avon product lines include such recognizable
brands as Anew, Skin-So-Soft, Advance Techniques Hair Care,
beComing , and Avon Wellness. Avon also markets an extensive line
of fashion jewelry, apparel, gifts and collectibles.
Avon's vision is to be the company that best understands and
satisfies the product, service and self-fulfillment needs of women
globally. The company's dedication to supporting women touches not
only beauty - but health, fitness, self-empowerment and financial
Avon started out as the California Perfume Company when founder,
Mr. David McConnell, 28 of New York, NY, USA discovered that the
rose oil perfumes he was giving away were the reason people were
buying his books. He named the company Avon in 1939 in tribute to
his favorite playwright, William Shakespeare and Stratford on
Mrs. P.F.E. Albee of Winchester New Hampshire, USA pioneered the
company's now-famous direct-selling method. Today, with sales
representatives numbering close to 3.5 million, Avon products are
sold in 143 countries around the world.
Reasons To Invest
Avon recently outlined its plan to achieve this year's earnings
estimates based on the strong prospects of its core businesses
and efforts to reduce costs. Wall Street expects the company to
earn $2.30 this year, which company officials recently affirmed
that they were on track to meet that goal. The earnings goal is
expected to come on about 5% annual growth in revenues.
This year's financial targets are positive but also leave room
for upside surprises. The company is coming off a record year
in 2001 during which most beauty consumer companies
struggled. Its performance last year stemmed from the renewed
focus on better products and leaner operating practices. The
company has focused on bigger name products through its
various distribution channels. Its direction sales channel
has benefited from incentive-based programs, resulting in higher
production from the field.
The strong financial position of the company was recently
asserted when the company raised its quarterly dividend by one
penny to 20 cents per share. It was the 12th consecutive year
that Avon increased its dividend, which reinforced the
company's long-term viability and commitment to shareholders.
For the company's next quarter, it's expected to earn 37
cents per share on sales of $1.4 billion, which would
represent a more than 5% sequential rise in revenues.
Shares to Qualify = 1 Accept Foreign Accounts: Yes
Auto-reinvestment = No Temper Enrollment Serv: Yes
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First Chicago Trust
Industry Group: Cosmetic Retail 52-week high=$53.20
Annual Dividend Per Share= 0.80 52-week low =$35.55
Last earnings 01/12 est = 0.74 actual = 0.74
Next earnings 04-15 est = 0.37 versus = 0.34
P/E = 29
Strong Buy = 5
Moderate Buy = 3
Hold = 5
Moderate Sell = 0
Strong Sell = 0