论文部分内容阅读
Company was hurt by restructuring and the sale of its skin-care line
Avon Products Inc. reported a deep quarterly loss and a weakening cash position， sparking renewed concerns about the beauty company’s liquidity as it works through a difficult turnaround.
The door-to-door seller of cosmetics and accessories posted disappointing third-quarter results， in which revenue slumped 22% and Avon’s ranks of active representatives continued to thin in the U.S. and many parts of the world. The New York-based company also lowered its sales and profit margin forecasts for the full year， underscoring its struggles to attain growth.
Avon’s chief financial officer， James Scully， said the company is weighing plans for its dividend next year in light of foreign currency headwinds that have reduced its cash flow and earnings. Avon currently pays quarterly dividends of 6 cents a share， for a total of about$100 million in annual cash payouts to shareholders.
“It would be prudent to look at the dividend with a more critical lens，” Mr. Scully said on a conference call to discuss Avon’s results.
The company ended the third quarter with $587.4 million in cash， down from $960.5 million at the start of the year. Its operations used up $97 million in cash in the third quarter， including a $67 million payment made to the Securities and Exchange Commission to settle an earlier bribery probe. Avon also retired some debt ahead of schedule with the help of proceeds from a recent asset divestment. It ended September with more than $2 billion in long-term debt.
Avon executives declined to discuss capital-raising options the company is considering. The Wall Street Journal reported in September that Avon was in talks to sell a stake to a private-equity firm and has considered other options for its business， including a sale of the entire company.
“Sometimes the media gets it wrong， sometimes it gets it right. I won’t comment on speculation，” Avon Chief Executive Sherilyn McCoy said when asked by analysts whether the company was still exploring strategic options.
Mr. Scully said he is “comfortable” Avon has the liquidity it needs to execute on its turnaround plans amid a backdrop of many foreign currencies continuing to weaken against the U.S. dollar. More than 80% of Avon’s revenue comes from outside the U.S.
In the third quarter， foreign currency declines reduced Avon’s revenue by 20 percentage points. In constantdollar terms， the company’s revenue slipped 2%. Overall revenue came in at$1.67 billion. Avon reported a loss of $697 million， or $1.58 a share， compared with a profit of $91.4 million， or 21 cents， a year earlier. The results were hurt by restructuring costs， charges related to its Venezuela business， and the sale of a natural skin care line called Liz Earle.
Avon sells a wide range of cosmetics， perfumes and accessories through a network of roughly 6 million representatives world-wide. The company has struggled for years to reverse sales declines in many countries and to recruit more sales representatives who will sell its products consistently.
The number of Avon representatives actively selling products slipped 1% in the recent quarter from a year ago， driven by a continued drop in sellers in North America， where sales fell 17% and the business returned to the red. Avon said it recruited more representatives in a few countries， including Russia and Brazil， in the third quarter.
Avon marketing mode swing into hardship
No Longer Recognized by Young Consumers
In fact， Avon has been more than three years of consecutive losses， was acquired by rumors， but did not show the real disk access， panic had no disk access. 2013， Avon rejected the French Coty （this company had acquired Ding） takeover request； May 2015 PTG had an unsolicited $ 8.2 billion the company intends to acquire Avon， but later found to be a hoax， The SEC also filed a lawsuit against PTG.
It is reported that the person in charge of public relations brand Avon China headquarters in Shanghai and Guangzhou， have left large areas already. It is noteworthy that the Chinese market has been adjusting， but in the third quarter， led by the Asia-Pacific region. Therefore， industry analysis， Avon withdraw from the Chinese market has no suspense.
‘When five or six years ago， in the street also occasionally see the Avon store， will go shopping with friends. Now， some old stores are assigned to do the other， the last two years basically never used the Avon . ‘A few days ago， a focus on Beauty industry for many years and engaged in related proxy Ms. Yan said Avon lotion， lip balm， etc. has been very popular in the younger age groups， but now more and more domestic brands rise， with foreign brands The accelerated into， Avon has been excluded from the scope of skincare of young hot.
Right now women， Avon into public audience from a small minority. Avon’s decline， perhaps on behalf of the entire foreign direct selling Japanese brand in decline. ‘There Avon brand it， in fact， the streets of Beijing barely see the body shop.’ This is a recent media survey in the streets， the answer for the Avon brand， women are given. With Watson， Sephora and other professional washing of the emergence of super， Avon now in the presence of female hearts indeed getting lower and lower. Reporters visited several stores in Avon， tourists are scarce， very quiet.‘Now the sources and types are on the decline， one day sell the goods， there is not much.’ An Avon store owner said. For Avon withdraw from the Chinese market， will the Avon store owner who have said that has not received the relevant notification.
Avon in the hearts of memory， more is to stay a few years ago or even ten years ago. Then， at around the university in a small washing shop on Avon considered a ‘big brand’ the. ‘At that time， Avon really fire.’ Ms. Song citizen， he has done Avon’s direct sales， she said， Avon has been able to fire， first， because it is stationed in China earlier direct brand， and the other， it is because Its product range， cost-effective.
Avon branch， a former employee said， to get direct selling license in China market first Avon， has a series of‘direct’ brand， once done fast， and rely on direct sales model， many employees will push Avon products to millions of households.
Avon Products Inc. reported a deep quarterly loss and a weakening cash position， sparking renewed concerns about the beauty company’s liquidity as it works through a difficult turnaround.
The door-to-door seller of cosmetics and accessories posted disappointing third-quarter results， in which revenue slumped 22% and Avon’s ranks of active representatives continued to thin in the U.S. and many parts of the world. The New York-based company also lowered its sales and profit margin forecasts for the full year， underscoring its struggles to attain growth.
Avon’s chief financial officer， James Scully， said the company is weighing plans for its dividend next year in light of foreign currency headwinds that have reduced its cash flow and earnings. Avon currently pays quarterly dividends of 6 cents a share， for a total of about$100 million in annual cash payouts to shareholders.
“It would be prudent to look at the dividend with a more critical lens，” Mr. Scully said on a conference call to discuss Avon’s results.
The company ended the third quarter with $587.4 million in cash， down from $960.5 million at the start of the year. Its operations used up $97 million in cash in the third quarter， including a $67 million payment made to the Securities and Exchange Commission to settle an earlier bribery probe. Avon also retired some debt ahead of schedule with the help of proceeds from a recent asset divestment. It ended September with more than $2 billion in long-term debt.
Avon executives declined to discuss capital-raising options the company is considering. The Wall Street Journal reported in September that Avon was in talks to sell a stake to a private-equity firm and has considered other options for its business， including a sale of the entire company.
“Sometimes the media gets it wrong， sometimes it gets it right. I won’t comment on speculation，” Avon Chief Executive Sherilyn McCoy said when asked by analysts whether the company was still exploring strategic options.
Mr. Scully said he is “comfortable” Avon has the liquidity it needs to execute on its turnaround plans amid a backdrop of many foreign currencies continuing to weaken against the U.S. dollar. More than 80% of Avon’s revenue comes from outside the U.S.
In the third quarter， foreign currency declines reduced Avon’s revenue by 20 percentage points. In constantdollar terms， the company’s revenue slipped 2%. Overall revenue came in at$1.67 billion. Avon reported a loss of $697 million， or $1.58 a share， compared with a profit of $91.4 million， or 21 cents， a year earlier. The results were hurt by restructuring costs， charges related to its Venezuela business， and the sale of a natural skin care line called Liz Earle.
Avon sells a wide range of cosmetics， perfumes and accessories through a network of roughly 6 million representatives world-wide. The company has struggled for years to reverse sales declines in many countries and to recruit more sales representatives who will sell its products consistently.
The number of Avon representatives actively selling products slipped 1% in the recent quarter from a year ago， driven by a continued drop in sellers in North America， where sales fell 17% and the business returned to the red. Avon said it recruited more representatives in a few countries， including Russia and Brazil， in the third quarter.
Avon marketing mode swing into hardship
No Longer Recognized by Young Consumers
In fact， Avon has been more than three years of consecutive losses， was acquired by rumors， but did not show the real disk access， panic had no disk access. 2013， Avon rejected the French Coty （this company had acquired Ding） takeover request； May 2015 PTG had an unsolicited $ 8.2 billion the company intends to acquire Avon， but later found to be a hoax， The SEC also filed a lawsuit against PTG.
It is reported that the person in charge of public relations brand Avon China headquarters in Shanghai and Guangzhou， have left large areas already. It is noteworthy that the Chinese market has been adjusting， but in the third quarter， led by the Asia-Pacific region. Therefore， industry analysis， Avon withdraw from the Chinese market has no suspense.
‘When five or six years ago， in the street also occasionally see the Avon store， will go shopping with friends. Now， some old stores are assigned to do the other， the last two years basically never used the Avon . ‘A few days ago， a focus on Beauty industry for many years and engaged in related proxy Ms. Yan said Avon lotion， lip balm， etc. has been very popular in the younger age groups， but now more and more domestic brands rise， with foreign brands The accelerated into， Avon has been excluded from the scope of skincare of young hot.
Right now women， Avon into public audience from a small minority. Avon’s decline， perhaps on behalf of the entire foreign direct selling Japanese brand in decline. ‘There Avon brand it， in fact， the streets of Beijing barely see the body shop.’ This is a recent media survey in the streets， the answer for the Avon brand， women are given. With Watson， Sephora and other professional washing of the emergence of super， Avon now in the presence of female hearts indeed getting lower and lower. Reporters visited several stores in Avon， tourists are scarce， very quiet.‘Now the sources and types are on the decline， one day sell the goods， there is not much.’ An Avon store owner said. For Avon withdraw from the Chinese market， will the Avon store owner who have said that has not received the relevant notification.
Avon in the hearts of memory， more is to stay a few years ago or even ten years ago. Then， at around the university in a small washing shop on Avon considered a ‘big brand’ the. ‘At that time， Avon really fire.’ Ms. Song citizen， he has done Avon’s direct sales， she said， Avon has been able to fire， first， because it is stationed in China earlier direct brand， and the other， it is because Its product range， cost-effective.
Avon branch， a former employee said， to get direct selling license in China market first Avon， has a series of‘direct’ brand， once done fast， and rely on direct sales model， many employees will push Avon products to millions of households.