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NEW YORK (TheStreet) -- Avon Products (AVP)  shares lost one-fifth of their value in Thursday trading after missing Wall Street expectations on third-quarter earnings. Shares had given up 23.2% to $17.20 by 12:35 p.m. EDT.

For the period ended September, revenue of $2.26 billion was 7% lower than a year earlier, disappointing analysts surveyed by Thomson Reuters who hoped for $2.44 billion. Earnings of 14 cents a share fell short of the expected 19 cents a share.

"The third quarter was tough. Our quarterly performance was negatively impacted by macroeconomic headwinds and continued weakness in some parts of our business, particularly North America," said CEO Sheri McCory in a statement.

In North America, revenue dropped 19% and the number of direct-selling representatives decreased by 16%. In emerging markets Mexico and Russia, sales fell 5% and 2% respectively.

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Separately, in an Securities and Exchange Commission filing, Avon said the SEC had proposed a potential settlement for an investigation into alleged bribery in overseas markets. Avon said the SEC's proposed terms of settlement were "of a magnitude significantly greater than our earlier offer" and such penalties were "unwarranted". Earlier in the year, the company had offered $12 million to settle the matter.

Written by Keris Alison Lahiff.