Avon Product Inc. reported a fourth-quarter 2014 net loss of $330.7 million. Sales for the quarter, ended Dec. 31, were $2.34 billion, down 12.2%.
In beauty, Avon saw a 13.6% decline in quarterly sales to $1.63 billion. Avon saw beauty sales fall in each of its three largest categories. Skin care sales fell 13% to $642.4 million, fragrance sales fell 12% to $596.6 million and color sales decreased 16% to $391.7 million. However, at constant currency, sales in the three categories rose.
The Manhattan-based company was negatively impacted by the strong U.S. dollar as it sold fewer units overall. With nearly 90% of all revenue coming from overseas, the direct seller of cosmetics was hurt by weakening demand and the strong dollar.
Last year Avon lost its top spot as the largest global direct sales company, yielding the ranking for the first time since 2004 to privately held Amway. For the year, Avon’s market share in global direct sales declined to 8.6% from a peak of 11.6% in 2010. Brazil, Avon’s largest market, saw a 7% decline in revenue. In the U.S., a top-four market, market share fell to 4.3% from a peak of 10.2% in 2007.
Avon CEO, Sheri McCoy, said: “While progress against our financial goals in 2014 was slower than I would have liked, I am pleased with the sequential improvements we made in several key markets and categories in the second half of the year.”
Also during the quarter, Avon named James Scully as Chief Financial Officer.