Avon Products reported fourth-quarter and full-year 2015 results. Q4 total revenue declined 20% to $1.6 billion.
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Q4 total revenue increased 3% in constant dollars excluding the divestiture of Liz Earle.
In addition, the year-over-year comparison is impacted by certain tax items in Brazil discussed further in the Latin America section of the regional highlights.
Excluding the impacts of Liz Earle and certain Brazil tax items, constant-dollar revenue would have grown approximately 6%2. The Company's Latin America markets experiencing high inflation (Venezuela and Argentina) contributed approximately 3 points to this constant-dollar revenue growth.
Gross margin was 58.7%, down 280 basis points. Adjusted gross margin was 58.8%, down 270 basis points. These year-over-year comparisons were negatively impacted by approximately 70 basis points due to the combined impact of the VAT credits in 2014 and the IPI tax in 2015.
Operating margin was 3.9% in the quarter, down 480 basis points. Adjusted operating margin was 6.0%, down 420 basis points. These year-over-year comparisons were negatively impacted by approximately 210 basis points due to the combined impact of the VAT credits in 2014 and the IPI tax in 2015.
Loss from continuing operations, net of tax was $15 million, or a loss of $0.04 per diluted share, compared with a loss of $305 million, or a loss of $0.70 per diluted share, for the fourth quarter of 2014.
Adjusted income from continuing operations, net of tax was $1 million, or $0.00 per diluted share, compared with Adjusted income from continuing operations, net of tax of $94 million, or $0.21 per diluted share, for the fourth quarter of 2014.
Full-year 2015
Total revenue declined 19% to $6.2 billion, but increased 3% in constant dollars excluding the divestiture of Liz Earle. In addition, the year-over-year comparison is impacted by certain tax items in Brazil.
Excluding the impacts of these items, constant-dollar revenue would have grown approximately 5%2. The Company's Latin America markets experiencing high inflation (Venezuela and Argentina) contributed approximately 3 points to this constant-dollar revenue growth. ■