Avon Products Inc.'s (AVP) fourth-quarter net income rose 80% amid year-earlier restructuring charges as revenue fell on the stronger dollar and weaker volume.

The company's earnings missed Wall Street's expectations. Still, the direct seller's stock rose recently more than 8% to $21.00 as some investors may have been bracing themselves for an even sharper hit to results.

"Given that the stock has been punished quite severely in recent days, the stock's performance today seems to be all about relief - relief that Latin America hasn't slowed for Avon- as yet, relief that cost savings are roughly on plan, relief that there is no update about the Foreign Corrupt Practices Act investigation," said Sanford Bernstein analyst Ali Dibadj.

Last year Avon announced that it had been investigating its China operations in connection with compliance with the Foreign Corrupt Practices Act, which bans bribing foreign officials.

On Tuesday, Chairman and Chief Executive Andrea Jung said "it is prudent" to assume that negative foreign-exchange and economic pressures will continue "for the foreseeable future," leading Avon to expect that 2009 will be a "challenging year."

The largest direct seller of cosmetics has been restructuring its operations since late 2005, cutting overhead and boosting compensation for sellers. But it may not be able to keep pace with consumers who are cutting back on mascara and face creams amid job losses and gloomy economic news.

Higher-end beauty companies Estee Lauder Cos. (EL) and Elizabeth Arden Inc. (RDEN) recently set low expectations for their fourth-quarter results, which they will report Thursday. While Avon's direct-selling model may give it an advantage, the company has been raising prices at a time when buyers are looking to save.

Meanwhile, Avon reported net income of $232.4 million, or 54 cents a share, up from $128.9 million or 30 cents a share, a year earlier. Restructuring costs were 1 cent and 34 cents, respectively.

Net sales fell 8.8% to $2.78 billion as units sold declined 3%.

Analysts polled by Thomson Reuters expected per-share earnings of 59 cents on revenue of $2.86 billion.

Operating margin rose to 13.3% from 7.3% on fluctuations in foreign-exchange rates as well as a stronger product mix and price hikes.

Beauty sales fell 7%, as the foreign-exchange impact offset growth in all categories, particularly fragrance and skin care.

North American earnings fell 14% as revenue dropped 11% and volume declined 6%. The company has been trying to boost overseas sales to offset weakening domestic results, though that may be hard to do as economic crisis continues to wallop all corners of the Earth.

-By Melissa Korn and Mike Barris, Dow Jones Newswires; 201-938-5400; melissa.korn@dowjones.com

-Anjali Cordeiro contribute to this report.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.