Avon saw revenue plummet 30 percent in China as the company continued its transition there to its traditional direct-selling model. China’s operating loss was $3 million for the quarter, compared with a $3 million profit in the third quarter last year. The company, a direct seller of women’s beauty products through a cadre of representatives, spent heavily on advertising and other investments in the quarter, but revenue was less than expected.

“The third quarter was always planned to be a heavy investment quarter, although the lower-than-expected revenues added further pressure to operating margin,” Chief Executive Officer Andrea Jung said in a statement.

Still, revenue was up 4 percent at $2.66 billion. Analysts on average forecast $2.69 billion. Revenue growth was stronger in Latin America and Africa, while North America and parts of Europe lagged or declined.

Avon’s net income in the third quarter rose to $166.7 million, or 38 cents a share from $156.2 million, or 36 cents a share, a year earlier. Excluding one-time items, earnings were 41 cents a share, compared with the analysts’ average estimate of 47 cents, according to Thomson Reuters.