by Christopher Freeburn | May 1, 2012 10:18 am
Earnings at Avon (NYSE:AVP) fell sharply during the first quarter, down 82% to $26.5 million, compared to $143.6 million during the same time last year.
Adjusted EPS tumbled to 10 cents, down from 37 cents in 2011 and missing analysts’ adjusted EPS forecast of 28 cents, the Washington Post noted.
Avon shares fell more than 5% in early Tuesday trading.
First-quarter profit margins dropped from 9.4% last year to 2.8% this year.
Revenue at the cosmetics manufacturer slipped 2% during the quarter, falling to $2.56 billion, led by a 2% fall in sales of personal care products. Skin care and beauty product sales both edged down 1%.
The company attributed the earnings decline, in part, to increased manufacturing costs and charges relating to its on-going restructuring plan.
In April, Avon spurned an informal $10 billion acquisition offer from Coty, which has indicated that it remains interested in pursuing discussions.
Last December, Andrea Jung stepped aside as CEO in the wake of declining sales and earnings. Sherilyn McCoy assumed CEO duties last month.
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