Activist fund Jim Mitarotonda's Barington Capital Group on Thursday relaunched its campaign at Avon Products (AVP - Get Report) , urging the beauty products company to start a search to replace its CEO, Sheri McCoy.
"During more than five years as CEO, Sheri McCoy has overseen a tremendous destruction of shareholder value," Mitarotonda said in the statement.
The activist fund released its missive after the company reported a net loss per share and $1.3 billion in revenue, below the consensus estimate of $0.01 in earnings per share. Avon's shares dropped about 22% Thursday to close at $3.62. But they rose about 2.2% in after-hours trading on the Barington campaign news.
The renewed campaign comes after a group of activists including Barington in March 2016 settled with Avon in a deal that allowed the fund to work with the company to identify one independent director for its 11-person board. Avon later added Jose Armario, a former corporate executive at McDonalds and expert on Brazil, to its board as part of that agreement. The addition of Armario was intended, in part, to help Avon expand into developing countries. In addition, Barington supported the addition of Cathy Ross, a former CFO of FedEx (FDX - Get Report) Express, to the company's board.
The settlement came after Avon in December agreed to sell an 80% stake in its North American operations to Cerberus Capital and received a capital injection in a deal valued at $605 million, as part of an effort to help turn around the ailing company. Of that, Cerberus agreed to invest $435 million into Avon and $170 million into its North American business.