In order to keep income trickling in, companies the likes of Avon (NYSE: AVP), Mary Kay, and Tupperware are seeing a flux of salespeople -- including professionals forced to take a second job thanks to the recession.

Becke Alexander, the sales manager for Avon, noted that she hears from laid-off bankers and stay-at-home moms every week, but the company is seeing a recent boon from "gainfully employed people worried how long they'll stay that way." In fact, Alexander said, "There are no hobby seekers coming in here. It's people with a legitimate need." This pop in makeup peddlers stems directly from the current economic crisis, but not just from unemployment. A common complaint is that bonuses have disappeared, as have hours, which have forced people to turn to direct sales to make up some cash.

Continue reading Avon, Mary Kay see an employment boom

Avon, Mary Kay see an employment boom originally appeared on BloggingStocks on Mon, 15 Jun 2009 11:40:00 EST. Please see our terms for use of feeds.

Under activist CEO Andrea Jung, Avon Products Inc. (NYSE: AVP) has turned itself around and is posting excellent numbers across the board and around the world. Investors interested in international stocks should still take a look at Avon which, despite being an American company, now earns slightly more than half its revenues from markets abroad. The stock opened the year trading at $33.60 and closed July 12 at $39.55, up 19% thus far this year. Not only do 2007 numbers look good compared to 2006, which was admittedly horrible, but as the reorganization efforts continue to gain traction worldwide, the numbers will only get better.

Here follows a summary of Avon's recent earnings report:

1Q 2007 total revenue grew 9% to $2.2 billion, with all 6 global divisions posting profits. Net income for 1Q TRIPLED to $150 million. The number of Avon representatives rose 4% to more than five million, making Avon the world's largest direct seller. Avon is spending $15 million to provide leadership and sales training for this potent sales channel. Operating profit rose 176%, (not a typo!) to $238 million despite continuing restructuring costs of $27 million. Thus far, FY 2007 cash flow is ahead of FY 2006 cash flow and the company repurchased $130 million of its stock during 1Q 2007. FY 2006 was marked by huge restructuring costs inlcuding inventory write offs and numerous products lines being discontinued. Most of the mess is behind Avon, a fact demonstrated by around the world increases in both revenues and profits.

Continue reading Ding dong, Avon calling. You should answer

Ding dong, Avon calling. You should answer originally appeared on BloggingStocks on Fri, 13 Jul 2007 10:40:00 EST. Please see our terms for use of feeds.

In what I would characterize as a desperate effort to win back market-share from Hewlett Packard (NYSE: HPQ), Dell (NASDAQ: DELL) recently announced that it would be partnering with Wal-Mart Stores, Inc. (NYSE: WMT). Monday's Wall Street Journal takes a look at how Dell, once the king of the PC industry, ended up in this position (Subscription required).

HP brought in Todd Bradley in 2005 to revitalize its PC operations, and he did just that. He realized that HP could not compete with Dell on consumer-direct sales, and instead focused on strengthening its sales to traditional retail outlets. In 2006, HP passed Dell in worldwide PC sales for the first time in years, and Bradley looks like a genius.

Now, Dell is trying to get back in the fight by moving into HP's territory: sales at retail stores. What's wrong with this picture?

It looks like Dell may be making the exact same mistake HP made before it hired Todd Bradley: Rather than focusing on its strength (consumer direct), Dell is trying to directly compete with HP for sales at brick and mortar stores. HP's recent improvements in service to retailers may make it hard for Dell to compete there.

Dell may do well to borrow a line from Todd Bradley's playbook: Don't try to enter new markets in which the company has little expertise, and focus on the core strength.

HP vs. Dell: Who will win the next round? originally appeared on BloggingStocks on Mon, 04 Jun 2007 14:45:00 EST. Please see our terms for use of feeds.

Time sells out of book clubs originally appeared on BloggingStocks on Tue, 10 Apr 2007 08:32:00 EST. Please see our terms for use of feeds.