Avon 2010 Annual Report Download - page 4

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Avon’s anniversary year marks another signifi cant period of evolution for your company.
Following a disappointing performance in 2010, we are taking aggressive actions to
get the business back on track as quickly as possible. As I refl ect on 2010, the year
was a tale of two halves. In the fi rst half, we delivered high single-digit organic revenue
growth and meaningful operating margin expansion. In the second half, organic
revenue growth softened to the low single digits, pressuring operating margin for
the balance of the year.
As the business softened, we conducted extensive research which confi rmed that
our performance in the second half of 2010 largely refl ected execution and operational
challenges in several key markets. Our direct-selling model and world-class Beauty
portfolio remain as relevant as ever. Avon continues to command 90% consumer brand
awareness and strong market shares, and we hold the number one position in direct
selling globally.
To Our Shareholders:
I am writing this letter to you on the milestone
of Avon’s 125th anniversary. Thirty-four
years before American women won the right
to vote, Avon was founded on the principle
of empowering women to earn an income for
themselves and their families. Decade in and
decade out, we have continuously evolved to
meet the changing needs of our Representatives
and Customers while staying true to our
founding principle of serving women’s needs.
Only a handful of Fortune 500 companies
have been in business for well over a century,
and Avon is one of them.