Updated from 8:15 a.m. EST with stock price

Avon Products (AVP - Get Report) on Thursday reported fourth-quarter earnings and revenue that were below analysts' expectations as demand fell across nearly all of its markets. The stock plummeted 19.45% to $4.72 in mid-afternoon trading today.

Before the market open, the New York-based cosmetics company posted adjusted earnings of a penny a share, while analysts had projected 9 cents per share. Revenue declined 2% to $1.57 billion from last year and fell short of the FactSet consensus of $1.61 billion.

"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," CEO Sheri McCoy said in a statement.

Active representatives declined 2%, mostly due to decreases in Asia Pacific and Europe, the Middle East and Africa, while bad debt expense increased 210 basis points, primarily in Brazil.

Revenue fell 7% in Europe, the Middle East and Africa, and dropped 10% in north Latin America. South Latin America revenue was up 9%, driven by higher average order.

Fourth-quarter average order increased 2% as growth in south Latin America, Asia Pacific and north Latin America was partially offset by a decline in Europe, the Middle East and Africa.

Avon also gave an upbeat update on the company's three-year transformation plan, which includes investing in growth and cost cutting.

"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," McCoy said.

The company said it realized about $120 million in cost savings last year.

More than 20.64 million of the company's shares traded so far today vs. its 30-day average volume of 3.93 million shares.