Why Nu Skin And Sally Beauty Are Better Buys Than Avon In Beauty Retail

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The third-quarter launch of Encanto and the fourth-quarter launch of Instinct in the body line and fragrance segments, respectively, have provided some relief to the company. Also, Avon has inked a deal with Korres, a premium all-natural product line, in order to bolster its revenue from the Americas. In addition, it is also exiting non-performing regions to increase its profitability. Avon has also finally decided to abandon the implementation of its service model transformation, or SMT, initiative as it proved counterproductive during its pilot phase in Canada. However, lagrendkrem.sk it might take some time before Avon manages to turn itself around completely. Sally’s traditional model is doing well Sally doesn’t rely on controversial MLM schemes for growth. It relies on the conventional distribution and retail of its products through a network of more than 4,000 stores. As a result, Sally posted solid fourth-quarter results for fiscal 2014. Sally’s business has performed well in the past few quarters, and growth in the beauty-systems segment is driving its results. On a consolidated basis, Sally’s same-store sales, or comps, increased 2.2% year-over-year in the fourth quarter, the best figure the company has achieved in several quarters. In addition, Sally saw solid sales growth across its segments, marked by traffic improvements in its beauty-supply segment and strong execution in its beauty-systems business. However, in comparison with its peers, Sally is overly reliant on the domestic market for its success. Takeaway Nu Skin seems to be the pick of the lot for aggressive investors with higher risk-taking capacities. On the other hand, Avon should be avoided until and unless its turnaround bears fruit. Finally, for the conservative investor, Sally could be a good pick since it relies on a time-tested business model and avoids the controversies associated with a MLM model. Will this stock be your next multi-bagger? Give me five minutes and I’ll show how you could own the best stock for 2014. Every year, The Motley Fool’s chief investment officer hand-picks 1 stock with outstanding potential. But it’s not just any run-of-the-mill company. It’s a stock perfectly positioned to cash in on one of the upcoming year’s most lucrative trends.
original version Why Nu Skin and Sally Beauty Are Better Buys Than Avon in Beauty Retail


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