Avon Products (NYSE: AVP) shares are down over 15% in the last six months. The S&P 500 index is higher by 14%.
Avon has not recovered from poor earnings and an SEC investigation. And, Wall St. does not believe the eventual departure of disgraced CEO Andrea Jung will help the company–if she leaves at all. No replacement has been found, and Jung plans to remain on as executive chairman, which may give her a great deal of influence over management.
Avon announced on December 14 that Jung would leave. This occurred after the company posted poor Q3 earnings,and said forward earnings would be poor, to some extent because of bad sales in Asia.
Avon dumped its vice chairman in January because of issues related to a bribery probe.
Charles Cramb, vice chairman in charge of developed markets for the door-to-door beauty company, is the most senior executive to lose his job amid probes by the company and government into whether Avon violated the Foreign Corrupt Practices Act, which prohibits bribery of foreign officials. Mr. Cramb had been Avon’s chief financial officer until the end of November and is the latest top official in the company’s New York headquarters to be dismissed in connection with the probes.
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