Avon cosmetics books US$10.7m loss, shares tumbleBusiness | 17 Feb 2017 11:26 am
Shares in Avon Products fell by 20 percent on Thursday as sales at the cosmetics company continued a long slide and the number of people selling them declined.
There were 2 percent fewer people selling Avon products during the quarter.
Sales have declined every year since 2012, and fell by 8 percent in 2016.
For the fourth quarter, Avon reported a loss of US$10.7 million, or 4 US cents per share.
Adjusted for expenses, the company made one penny per share, far worse than the per-share earnings of 9 US cents that Wall Street had expected, according to a survey by Zacks Investment Research.
Its revenue of US$1.57 billion was just short of the US$1.6 billion industry analysts had projected.
In early 2016, the company initiated a three-year plan to revitalize the brand and cut costs. In March, it announced 2,500 job cuts and said that it would move its headquarters from New York to Britain.
On Thursday, Avon said that it had realized an estimated US$120 million of savings last year. It said that it exceeded its goal of cutting US$250 million in debt by $10 million.
For the year, the company reported that its loss narrowed to US$107.6 million, or 29 cents per share. Revenue was US$5.72 billion. -AP