UPDATE 1-Avon quarterly profit tops Street view

* Q3 adj EPS $0.42 top Street view of $0.40

* Revenue $2.55 billion vs. $2.64 billion year earlier

CHICAGO, Oct 29 (Reuters) - Avon Products Inc (AVP.N) posted a lower quarterly profit as it kept a tight lid on costs and more women signed up to sell its cosmetics, but sales continued to suffer in the downturn.

The world's largest direct seller of cosmetics is meeting with investors on Thursday to discuss its results and outline strategies, such as steps it is taking to sustain growth in Latin America and improve results in North America. It previously announced plans to overhaul its supply chain and cut 1,200 jobs by 2013.

Third-quarter net income fell to $156 million, or 36 cents per share, from $223 million, or 52 cents a share, a year earlier.

Excluding restructuring costs, the company earned 42 cents per share. Analysts on average were expecting 40 cents, according to Thomson Reuters I/B/E/S.

Revenue fell to $2.55 billion from $2.64 billion.

Avon has benefited as rising unemployment, salary cuts and reductions in hours have forced people to seek out ways to make extra cash, but its sales have suffered as consumers spend less.

Avon said the ranks of its active representatives, who sell products such as Anew skin care and Jillian Dempsey makeup, increased 10 percent in the third quarter. (Reporting by Jessica Wohl; Editing by Lisa Von Ahn)