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Wednesday, 03/13/2002

AVP - Avon Products

Company Description

In over a hundred countries, Avon is a leader in beauty and a trusted name in direct selling. But that's only the beginning. More and more, you'll find Avon in kiosks and corner stores... in fashion and in fitness... on the web and on your wavelength.

Avon is the world's leading direct seller of beauty and related products, with $6.0 billion in annual revenues. Avon markets to women in 143 countries through 3.5 million independent sales representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Advance Techniques Hair Care, beComing , and Avon Wellness. Avon also markets an extensive line of fashion jewelry, apparel, gifts and collectibles.

Avon's vision is to be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally. The company's dedication to supporting women touches not only beauty - but health, fitness, self-empowerment and financial independence.

Avon started out as the California Perfume Company when founder, Mr. David McConnell, 28 of New York, NY, USA discovered that the rose oil perfumes he was giving away were the reason people were buying his books. He named the company Avon in 1939 in tribute to his favorite playwright, William Shakespeare and Stratford on Avon.

Mrs. P.F.E. Albee of Winchester New Hampshire, USA pioneered the company's now-famous direct-selling method. Today, with sales representatives numbering close to 3.5 million, Avon products are sold in 143 countries around the world.

(Source: Avon)

Reasons To Invest

Avon recently outlined its plan to achieve this year's earnings estimates based on the strong prospects of its core businesses and efforts to reduce costs. Wall Street expects the company to earn $2.30 this year, which company officials recently affirmed that they were on track to meet that goal. The earnings goal is expected to come on about 5% annual growth in revenues.

This year's financial targets are positive but also leave room for upside surprises. The company is coming off a record year in 2001 during which most beauty consumer companies struggled. Its performance last year stemmed from the renewed focus on better products and leaner operating practices. The company has focused on bigger name products through its various distribution channels. Its direction sales channel has benefited from incentive-based programs, resulting in higher production from the field.

The strong financial position of the company was recently asserted when the company raised its quarterly dividend by one penny to 20 cents per share. It was the 12th consecutive year that Avon increased its dividend, which reinforced the company's long-term viability and commitment to shareholders.

For the company's next quarter, it's expected to earn 37 cents per share on sales of $1.4 billion, which would represent a more than 5% sequential rise in revenues.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = No          Temper Enrollment Serv:  Yes

Min/Max Investment = $10 to $5,000/month

Reinvestment Fees -

Div : 0 
Cash: 0
Auto: N/A

Transfer Agent:

First Chicago Trust


Industry Group:  Cosmetic Retail  52-week high=$53.20
Annual Dividend Per Share=  0.80  52-week low =$35.55
Last earnings 01/12   est = 0.74  actual = 0.74
Next earnings 04-15   est = 0.37  versus = 0.34
                                    P/E =    29
Analyst Ratings:
Strong Buy    = 5
Moderate Buy  = 3
Hold          = 5
Moderate Sell = 0
Strong Sell   = 0


Copyright 2003

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