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any profit selling AVON


Posted: Jul 14, 2014

Just wondering if Avon is still a way to supplement income-can't drive to pass out booklets/products- but what about onlines sales reps?

;

Not so - sure...

[ In Reply To ..]
I read somewhere not long ago that Avon might be one of those companies that's soon to be defunct. This article was on Fox business website:

It would be hard to find another large American company as bad off as Avon Products (NYSE: AVP). Avon’s long time CEO Andrea Jung was ousted late last year after nearly wrecking the company. Avon’s new CEO, Sherilyn S. McCoy, formerly of Johnson & Johnson (NYSE: JNJ), joined the company in April. She has has not run a public corporation let alone one in big trouble. The SEC’s examination of Avon’s communications with securities analysts has already cost CFO Charles Cramb his job. Avon is also under scrutiny for whether its Chinese operations meet compliance standards under the Foreign Corrupt Practices Act. One of Avon’s core problems is that the beauty market is highly competitive, yet management has not been able to concentrate on its core business. As Morningstar analyst Erin Lash recently wrote, "Despite restructuring initiatives that have cost the firm nearly $800 million through fiscal 2011, it appears to us that Avon is constantly putting out fires rather than proactively moving forward." There is a great deal to fix. Avon announced disastrous earnings in the last quarter, and has forecast things will get worse. Avon, however, is fortunate that it may have a suitor. In May, perfume company Coty offered $24.75 a share for Avon, which was nearly 20% above Avon’s stock price at the time. Coty had the financial backing of, among others, Warren Buffett. Avon dragged its feet and Coty withdrew its offer. But Coty, another consumer products firm, or a private equity house will be back. Since the Coty offer was withdrawn, Avon’s shares have dropped below $16. That price is down from $43 four years ago. The market has no confidence in Avon, but with its brand and revenue it is an ideal takeover target.


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