Avon Products, Inc. has reported first-quarter 2015 results. “Overall, the first quarter was in line with our expectations despite currency pressures that were greater than anticipated. Continuing on the momentum we saw in the second half of 2014, I’m encouraged to see improvement in our Active Representative trends and constant-dollar revenue growth in the majority of our top markets,” said Sheri McCoy, Chief Executive Officer of Avon Products, Inc.

McCoy continued, “Despite continued foreign exchange pressure, I’m really impressed with how well our teams in market are managing in this volatile environment. This is a payoff for the work we’ve done over the past two years on strengthening our talent and improving core processes.”

First-Quarter 2015 Income Statement Review

Revenues for Avon Products, Inc. decreased 18% to $1.8 billion, but increased 1% in constant dollars, driven by strong growth in Europe, Middle East & Africa.

Active Representatives2 were down 1% year-over-year but reflect a sequential improvement from prior quarters. The overall decline in Active Representatives was driven by North America, partially offset by growth in a number of markets, most significantly Russia. Average order2 increased 2%, which benefited from price increases in markets experiencing high inflation (Venezuela and Argentina).

Total units decreased 2%, driven by a decline in North America. Price/mix was up 3% during the quarter, aided by pricing in markets experiencing high inflation.

Beauty sales declined 17%, but increased 3% in constant dollars. Fashion & Home sales declined 19%, or 3% in constant dollars.

Full-Year 2015 Outlook

Avon continues to expect constant-dollar revenue to be up modestly in 2015 as compared with 2014. However, based on recent foreign currency rates, revenue in reported dollars is expected to be negatively impacted by foreign currency translation, which is now expected to have an approximate 17 point negative impact (compared with the previous outlook of an approximate 12 point negative impact).

Avon also expects Constant-dollar Adjusted operating margin to be approximately 50 basis points lower than 2014, and Adjusted operating margin in reported dollars is expected to be down approximately 200 basis points as compared with 2014, due to the expected impact from foreign currency translation and IPI.