Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Avon CEO McCoy Will Leave The Company

Avon Products Inc. launched a three-year transformation plan last year

Specialist Ronnie Howard works under the Avon logo on the floor of the New York Stock Exchange, Tuesday, March 15, 2016, photo: AP/Richard Drew
5 months ago

LONDON – Avon’s CEO will leave the company in March as the struggling beauty products maker continues a turnaround campaign.

Sheri McCoy has led the company for five years and sits on the board, but there has been some external pressure from activist investors for a change in leadership.

Avon said Thursday that it has hired an executive search firm to help find McCoy’s successor.

“The platform is in place for a new CEO to continue accelerating the pace of change and take Avon to sustainable profitable growth,” McCoy said in a company release.

Barrington Capital Group had been pushing for significant action at Avon since 2015, when it sent a letter saying that, “significant, immediate changes in leadership and strategic direction are needed.”

In March 2016 Avon announced that it was cutting 2,500 jobs.

Avon Products Inc. launched a three-year transformation plan last year and so far it has sold its North American business to private investment firm Cerberus Capital Management and realized $180 million in cost savings. But those efforts have been arduous.

The company on Thursday swung to a surprise loss of $45.5 million in the second quarter.

Shopping habits have shifted dramatically, enough to jolt the iconic U.S. brand dating back to 1886, which moved its headquarters from New York to the U.K. last year.

Sales have declined every year since 2012, and fell 8 percent in 2016. The company has fewer “Avon Ladies” going door-to-door every quarter.

It has been beset by software problems, a commission system that it’s been trying to improve under McCoy, and a delayed entry into e-commerce that put it behind competitors.

Industry analysts who follow the company did not see many signs of the turnaround effort now underway.

“Overall we believe challenges are accelerating, with visibility lacking,” wrote Mark Astrachan, an analyst with Stifel Nicolaus. “We believe Avon continues to lose share and consumer relevance in a number of key markets, increasing the difficulty in achieving a sustainable improvement in sales growth and operating margin, particularly given worsening sales trends while reinvestment increases.”

Shares slumped 10 percent in midday trading Thursday to trade near three-year lows.

Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Democrat Jones wins stunning red-state A ...

5 days ago

Asian stocks mixed ahead of Fed rate ann ...

5 days ago

NFL Network suspends analysts over sexua ...

5 days ago

Minnesota announces restrictions on usin ...

5 days ago
Most Popular

Energy Secretariat Grants Permissions to ...

By The Associated Press

French PM says Disputed Labour Bill Open ...

By The Associated Press

White House Steps Up Aid for Financially ...

By The Associated Press

WALMEX Sales Grow 15.6 Percent in Februa ...

By Omar Sánchez

Many Experts Skeptical Trump’s Trade Thr ...

By The Associated Press