Avon Products (NYSE: AVP) had a difficult third quarter. Currency translations helped to drive a 4% decrease in net revenue. Excluding that effect, sales were up 7%. Net income decreased a big 31% to 36 cents per share.

However, according to Reuters, adjusted earnings of 42 cents per share beat analyst projections by two pennies. Such news didn't seem to matter to the market. At the time of this writing, Avon was down 1.9% on significant volume.

Avon's (NYSE: AVP) stock is up well over 9% as I write this. The market liked the Q4 report. Which is interesting, since the beauty company, whose competitors include Procter & Gamble (NYSE: PG) and Revlon (NYSE: REV), actually missed estimates.

That's always confusing, isn't it? Net sales dropped 9% to $2.8 billion, and earnings per share rose 80% to $0.54. The call, according to The Week in Preview piece, was for a top line of $2.9 billion and a bottom line of $0.59 per share.

Avon Products (NYSE:AVP), famous for its army of 5 million sales representatives selling cosmetics door-to-door, is embarking on a new ad campaign to attract new representatives. To see one version of the commercial, which is on YouTube for some bizarre reason, click here. Avon is increasing its advertising budget 36% in 2007, to $340 million. In 2005, the company spent just $135 million.

The campaign's "Hello Tomorrow" theme will attempt to bolster the company's image, which some believe has floundered as the products are not considered cool by young people. Will it work? I hardly consider myself a cosmetics expert, but I'll be surprised if it does. Avon is a household name, and the marketing that has made it such an iconic brand has also given it a certain stigma: It's seen as corny by most people in my age group. I'll give CEO Andrea Jung mad props if she succeeds in making Avon hip to a new generation but I'll also be surprised. Avon has a strong core audience, but I have doubts about its ability to attract new customers. What do you think?