Avon Products, Inc. (AVP) - Bear of the Day
June 07 2012 - 8:00PM
Zacks
Avon Products Inc.'s (AVP) first-quarter 2012 earnings of
$0.10 per share missed the Zacks Consensus Estimate of $0.28 and
dipped nearly 73% from the prior-year quarter. Moreover, the
company's net sales inched down 2%, reflecting a fall of 1% in
total units, partially offset by benefit from favorable price mix.
The disappointing results were primarily due to sluggish
performances in every category, coupled with increased input costs
and operating expenses. The North American market remains sluggish,
with sales falling 4% in the quarter. Moreover, the company's
initiatives to change product mix and reposition the business in
the U.S. market will require significant advertising and
promotional expenditures, which may dent its margins.
Further, we believe Avon has missed the opportunity of reviving
itself citing Coty's withdrawal of its takeover bid. Currently, we
are maintaining a long-term Underperform recommendation on the
stock and a Zacks #5 Rank.
AVON PRODS INC (AVP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Avon Products (NYSE:AVP)
Historical Stock Chart
From Sep 2024 to Oct 2024
Avon Products (NYSE:AVP)
Historical Stock Chart
From Oct 2023 to Oct 2024