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

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,078.22 +134.41 0.79%
S&P 500 1,978.28 +10.71 0.54%
NASDAQ 4,445.4260 +29.9360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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