Avon Products, Inc. (NYSE: AVP), a globally recognized leader in direct selling of beauty and related products, today announced its results for the quarter ended March 31, 2018.
Jan Zijderveld, Avon CEO, said,
“Avon’s first-quarter results were unsatisfactory and do not represent the underlying potential of the business.
During my first 90 days, I have been deeply engaged in a comprehensive review of the Company’s operations, including on-the-ground visits to many of our top markets where I have met with many of our direct selling Representatives.”
Zijderveld emphasized,
“While we are focused on the formulation of Avon’s longer-term plans, we are already implementing near-term fixes that support the success and satisfaction of our Representatives–starting with actions to improve service delivery.
Our long-term mission is clear, to return Avon to a competitive market position, and we are moving with deliberate urgency to design our turnaround plan.”
Highlights for First Quarter of 2018:
Total Revenue increased 5% to $1.4 billion, or 2% in constant dollars1, both including a 6% reporting benefit due to the impact of adopting the new revenue recognition standard required by generally accepted accounting principles in the United States (“GAAP”)
Active Representatives and Ending Representatives declined 4% and 1%, respectively, largely due to declines in Brazil.
Operating
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Avon Lady To Stop Calling In Australia
by Ted Nuyten • • 0 Comments
According to an article in an Australian newspaper:
An 84-year-old north Brisbane (Australia) woman is preparing to make her final Avon deliveries almost 50 years after she joined the global beauty company.
Avon, which reached Australia in 1963, announced in February that it will withdraw from Australia and New Zealand by the end of this year. For Margaret Cook of Stafford Heights and more than 21,400 Avon representatives, this means they are now handing out their final brochures.
The grandmother of four said she felt “a bit deflated” when she heard the news.
“I started selling Avon at the end of June 1968 so I’ll be about four weeks short of 50 years when I finish.
“My cousin was the district manager and she suggested I become a rep. At the time I had three small children (from 2-7 years) and I thought I could fit that in.
“I have not missed a campaign in nearly 50 years.”
Mrs Cook said she had also made some great friends through Avon. “I’ve still got some customers I met on my first day and the lady who was my rep (Ruth Gibb), I am now her Avon lady.”
Margaret Cook of Stafford Heights and Ruth Gibb of Aspley look over some of
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New Avon Appoints Lori Bush To The Board of Managers
by Ted Nuyten • • 0 Comments
New Avon has appointed Lori Bush to the company’s Board of Managers, effective immediately.
Bush is experienced in both the worlds of direct selling and consumer beauty products. From October 2007 through January 2016, she served as president and CEO of Rodan + Fields.
During her tenure, the company re-launched under a social commerce model that grew to become a billion-dollar business and one of the largest skincare brands in the U.S.
Prior to Rodan + Fields, she served as president of Nu Skin, the global personal care division of Nu Skin Enterprises and held the positions of worldwide executive director of skin care ventures at Johnson & Johnson and vice president of professional marketing for Neutrogena. She currently serves on the boards of Ruby Ribbon, Viveve, Leo Holdings and Topic Pharmaceuticals Inc.
“Lori is one of the pre-eminent experts in the direct selling industry, and we are excited to welcome her to our board,” said Scott White, CEO and member of the board of New Avon LLC. “As we work to become the No. 1 social selling company in North America, Lori will be a great advocate for our efforts to build the Avon Representative experience of the future through digital advancements and the
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Avon Closes Down In Australia And New Zealand After 50 years 21,000 Reps In Shock
by Ted Nuyten • • 0 Comments
In a statement, the company confirmed Avon would close its operations in Australia and New Zealand by the end of the year, leaving the company’s 220 staff and more than 21,400 representatives facing an uncertain future.
The statement read:
“As part of the company’s strategy to return Avon to long-term sustainable profitable growth, the focus will be on markets with the greatest potential for future growth to support its vision of becoming the world’s leading social beauty company.
“In line with this, after a thorough deliberation on our performance, the direct selling conditions in the market, and potential for growth, we have considered all options for the business and it is with much sadness that we are announcing our decision to exit the Australia and New Zealand markets.”
Current and former Avon reps have bombarded the Avon Facebook page with messages of disapproval.
Avon ANZ president and managing director Sharon Plant said it was a “sad day” for the company’s employees and representatives.
“As a management team our commitment and focus over the coming days, weeks and months is to support our people and the wider Avon community who are impacted by this decision,” she said.
“I would like to thank all the employees, representatives and customers
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Avon Products Appoints Jan Zijderveld As CEO
by Ted Nuyten • • 0 Comments
Avon Products, Inc. (NYSE: AVP), today announced that Jan Zijderveld has been appointed Chief Executive Officer, effective immediately.
He succeeds Sheri McCoy, who previously announced her intention to retire from the Company and Board. Jan will also serve as a member of the Board of Directors.
Jan joins Avon from Unilever N.V./PLC (“Unilever”), a global leader in personal care, home and food products, where he has had a 30-year career, living and working in seven countries across three continents. He most recently served as a member of Unilever’s Executive Committee, and as President of Unilever’s $14 billion European business.
As President of Europe, Jan was responsible for Unilever’s largest operating business, encompassing 34 countries and 25,000 employees. Under Jan’s leadership, the European business stabilized and returned to growth and improved profitability following several years of decline and during significantly challenging market conditions.
He previously served as Executive Vice President in South East Asia and Australasia, where he drove substantial organic growth through a significant step-up in innovation, market development and in-store execution. During this time Jan was also Non-Executive Chairman of Unilever’s listed Indonesian business, with a market capitalisation in excess of $20 billion.
Prior to that, as CEO of Unilever, Middle East and North Africa, Jan successfully led a complex business, in a volatile region, which included many joint
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How Avon’s CEO Failed To Fix The Company
by Ted Nuyten • • 0 Comments
Online business magazine Fortune.com has published the next article about Avon:
When beauty giant Coty (coty, +1.67%) made an unsolicited $10.7 billion for Avon Products (avp, +3.14%) in April 2012, the direct seller’s board was adamant shareholders would be better off letting incoming CEO Sheri McCoy fix a very damaged company. It proved to be one of the biggest blunders in M&A history.
Fast forward five years, Avon’s stock market value is down to $1.3 billion and McCoy is on her way out in March, having failed to improve the company by almost any measure. The number of sales representatives, iconically known as ‘Avon Ladies’, has shrunk in all but one of the years of her rein and the declines have continued into 2015.
Avon has racked up about $1.8 billion in losses and last year sold off its North American business to private equity firm Cerberus, a huge blow for a company founded in 1886 in New York when a door-to-door bookseller found that the perfumes he mixed himself were popular with his customers.
Ultimately, McCoy was trying to fix an unimaginable mess at a company with operations all over the world, and proved slow to react to market changes such as the
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Avon CEO Sheri McCoy Is Expected To Step Down
by Ted Nuyten • • 0 Comments
According to an article in Wall Street Journal:
Sheri McCoy, the CEO of cosmetics company Avon, is reportedly expected to step down.
The Wall Street Journal, citing people familiar with the matter, reports that the 58-year-old chief executive may be retiring. The terms of her potential departure, as well as details about a replacement, are not yet known.
McCoy’s possible departure gave some investors hope, sending shares of the struggling makeup company up roughly 4.6% by the market’s close Wednesday.
The company has struggled with declining sales and a sharp downtick in its stock price in recent years. In May, Avon’s stock price dropped 22% in a single day, falling to $3.62.
That prompted two shareholders — Barington Capital Group LP and NuOrion Partners AG, which together own 3% of the company’s stock — to urge the 131-year-old cosmetics brand to look for a new CEO.
Earlier this week, Avon announced that Miguel Fernandez, a former Herbalife executive, would take over as global president in August — replacing John Higson, who is set to retire in the fall, the Wall Street Journal reported.
About Avon Products, Inc.
Avon is the company that for more than 125 years has stood for beauty, innovation, optimism and, above all, for
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Avon Products Q1 Sales Up 2% To $1.3 Billion
by Ted Nuyten • • 0 Comments
Avon Products (NYSE: AVP), a globally recognized leader in direct selling of beauty and related products, today announced its results for the quarter ended March 31, 2017.
“Our first quarter was broadly in line with our expectations and we remain confident in our strategic initiatives and the progress against our plan,” said Sheri McCoy, Chief Executive Officer, Avon Products, Inc.
“We are moving into the second year of our three-year Transformation Plan, in which we will continue to build on the robustness of our brand, drive beauty innovation, and invest in initiatives to enhance Representative engagement while ensuring continued cost discipline. Today we are providing full-year 2017 guidance consistent with our longer-term financial goals.”
Highlights for First Quarter of 2017:
Revenue increased 2% to $1.3 Billion; Decreased 1% in constant dollars1
Active Representatives and Ending Representatives, both
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Avon Sponsors Liverpool Ladies Football Club
by Nicole Dunkley • • 0 Comments
Avon Products Inc., the company for women, recently announced a ground-breaking sponsorship as the global beauty giant became Principal Partner of Liverpool Ladies Football Club and the Club’s Official Ladies Beauty Partner.
Avon and the Liverpool Ladies FC herald a new dawn in women’s football, as the partnership will see Avon become the team’s first independent shirt sponsor to that of its male counterpart. Furthermore, for the first time in history, Avon will become the first female-focused brand to sponsor an FA Women’s Super League Club.
“This sponsorship is another stride forward in our support for women and one that we’re approaching with whole-hearted commitment as we embark on this new and exciting venture together,” said Andrea Slater, General Manager of Avon UK.
“The teams and professionals we have spoken to on this journey
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Avon Products 2016 Sales Down 7% To $5.7 Billion
by Ted Nuyten • • 0 Comments
Avon Products, Inc. (NYSE:AVP), a globally recognized leader in direct selling of beauty and related products, announced its results for the fourth quarter and fiscal year ended December 31, 2016.
“We made good progress in the first year of our Transformation Plan, exceeding our cost savings targets, improving our profit margin, and significantly strengthening our balance sheet.
However, the financial results for the fourth quarter were disappointing, largely due to the decline in Active Representatives and an unexpected increase in bad debt expense,” said Sheri McCoy, Chief Executive Officer, Avon Products Inc.
“As we move into 2017, we are taking actions to deliver more consistent performance across our markets, with Representative engagement remaining a key priority in our growth plan, while navigating continued challenging global economic and political headwinds.”
Highlights for Fiscal 2016:
Revenue declined 7% to