Welcome Guest to Happi

Subscribe Free: Magazine | eNewsletter

current issue May 2015
 •  Palmers Casts Hewitt for Fall Campaign  •  UPDATE: P&G Sells Frédéric Fekkai  •  Novex Expands With Curls Collection  •  Net-A-Porter Picks Up Goldfaden MD  •  Spectrum Buys Armor All
Print

From Bad to Worse at Avon



Published October 31, 2013
Related Searches: sales challeng china financial
Post a comment
It was all tricks and no treats for Avon on this Halloween. Company share prices plunged down 22% (the worst decline in 14 years), after the direct seller of beauty products said the Securities and Exchange Commission and the U.S. Department of Justice may propose much bigger than expected settlement terms over investigation into its alleged bribery practice in China and other countries.


The federal agencies in June rejected Avon's proposed $12 million settlement offer. Avon said it was contacted by SEC staff in September, when SEC's suggested terms of proposed monetary penalties that were much bigger than Avon's earlier offer. The company said if the DOJ were to propose similar terms and the company were to enter into settlement, its "earnings, cash flows, liquidity, financial condition and ongoing business would be materially adversely impacted." The disclosure was made as Avon swung to a third-quarter loss following about a 20% sales drop each in North America and Asia.


"There's no shortage of challenges for us," CEO Sheri McCoy said on a call


blog comments powered by Disqus