Avon Fails To Recover

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By Douglas A. McIntyre Published

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.

According to WSJ

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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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