This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Avon Products (AVP) Is Dropping on Thursday

Stocks in this article: AVP

NEW YORK (TheStreet) --  Avon Products (AVP) is dropping on Thursday after the cosmetics company reported a double-digit drop in volume over its fourth quarter.

By midafternoon, shares had taken off 2.9% to $14.63. Trading volume of 10.3 million was more than double its three-month average of 4.3 million.

In the three months to December, Avon Products reported revenue of $2.7 billion, 10% lower than a year earlier and around $80 million less than analysts surveyed by Thomson Reuters had forecast. Total units decreased 10%, with an 11% and 8% decline in beauty and fashion & home sales, respectively.

By region, Latin American sales were down 7% from the year-ago quarter, weighed down by a 15% drop in Mexico but partially offset by a 6% increase (stripping out forex impacts) in Brazil. In Europe, the Middle East and Africa, revenue was down 4%, with a 3% and 5% drop in Russia and the U.K., respectively.

In North America, sales declined 21%, lagged by a 25% decrease in beauty sales. Sales in the Asia Pacific were 22% lower, with revenue in China half that of the year-ago quarter.

"Although the second half of the year was impacted by both execution and macro-economic factors, I'm pleased that we are making headway toward our financial goals and Avon's return to profitable growth," said CEO Sheri McCoy in a statement.

Also depressing investor sentiment, the New York-based company is in advanced negotiations to settle a bribery probe levied against it by the U.S. Securities and Exchange Commission and Department of Justice. In a conference call to analysts on Thursday, McCoy said a settlement would likely cost between $89 million and $132 million.

"Our discussions with the government are ongoing and differences remain, but the team is working hard in an effort to bring these matters to a close," she said.

Also See: Comcast's Deal for Time Warner Cable is Good For America

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs