Avon Profits Fall

Profits for Avon Cosmetics fell by 7 percent in this last economic quarter. Although the shares of Avon rose by 7 percent, the Avon company has been facing difficulties regarding competition. There has been an increased amount of competition especially in the area of anti-aging and other skin care products. Although Avon remains the largest direct-seller of cosmetics, it hopes to improve over the next year and restructure its company.
Avon will continue to operate fully as it sees the relationship between overall economic troubles in the country and the amount of sales for Avon products. As the economy worsens, for example the continuous rise and fall of gas prices, many Americans are shifting to buy other goods. As their spendable income decreases, the amount spent on lower margin products increases.