NEW YORK (AP) â¿¿ Avon Products Inc.'s first-quarter profit dropped 82 percent, hurt by a bigger restructuring charge, commodity costs and higher labor costs as the company fends off makeup company Coty's takeover overture and adjusts to its new CEO.
Its adjusted earnings were short of Wall Street estimates and its shares fell 60 cents, or 2.8 percent, to $21 per share in early premarket trading.
The New York beauty company, whose brands include Anew and mark, reported Tuesday that its net income of $26.5 million, or 6 cents per share, for the period ended March 31, down from $143.6 million, or 33 cents per share, a year earlier.
Excluding one-time items, earnings were 10 cents per share. Analysts surveyed by FactSet expected earnings of 28 cents per share. The analysts typically exclude one-time items from their estimates.Revenue slipped 2 percent to $2.58 billion from $143.6 million a year ago. That beat Wall Street's estimate of $2.52 billion. Fragrance and skincare sales dipped 1 percent, while sales of personal care products fell 2 percent on a reported basis. Avon rejected a $10 billion takeover overture from beauty products maker Coty last month, but Coty said it still wants to meet with Avon. Coty has said it wants to look at Avon's books before making a formal offer. Avon recently tapped long-time Johnson & Johnson executive Sherilyn S. McCoy as its new chief executive.