At Avon, Things Go from Bad to Worse

Avon Products reported today that first quarter earnings dropped 82% to $26.5 million. Revenue for the period dropped 2% to $2.58 billion.

“While our first-quarter operating performance remained challenged, we are making progress toward addressing some of our operational and cost-cutting opportunities,” said Kimberly Ross, executive vice president and chief financial officer. “With Sheri McCoy now on board, we are confident that her broad leadership experience and skills in managing large, complex, global organizations will help drive Avon’s future success. We look forward to communicating further with investors about our future growth strategy at the appropriate time.”

Gross margin fell 3.1 percentage to 60.8%. Observers blame the decline on rising costs, which went up 6.3% from a year ago.

Meanwhile, Avon execs were mum on Coty’s $10 billion takeover bid.