It has been reported that the first quarter earnings of Avon Products Inc.'s (AVP) dropped by 64%. This fall ensues due to the charges associated with Venezuela's currency devaluation, which took over solid sales gains.

The sales in North America dropped 2% and sales in China decreased by 31%. This comes as Avon made changes on how it functions is these regions.

It was also stated that direct-seller companies like Avon and Tupperware Brands Corp. (TUP) have gained from increased level of unemployment. This level has increased the sales force.

However, in February of this year the Standard & Poor's Ratings Services downgraded its ratings on Avon. This move came a short while after the company reported that its fourth quarter profit had increase by 16%. The reason stated behind this degraded rating was that the cosmetic company did not meet the expectations in comparison with other direct sellers in the recent quarter.

Avon posted a profit of $42.5 million, or 10 cents a share. Last year its profit was $117.3 million, or 27 cents a share, a year earlier.