Analyst Beats Up on Avon

Last week, Avon reported a worse-than-expected third-quarter net income decline. At the same time, Avon said it was reviewing all aspects of its operations and withdrew its yearly guidance. At the same time, the Securities and Exchange Commission is reviewing a bribery probe in China that has been ongoing since 2008 and Avon’s contact with financial analysts in 2010 and 2011.

Shares of Avon have fallen 37% since the beginning of the year.

In a note to investores, Ostlund said,”Weakness appears to be fairly broad-based with mature markets like North America in a steady decline and some emerging markets starting to cool off (Brazil) or continuing recent declines (China).”