The iconic door to door makeup company is in serious trouble. If you have never heard of Avon then you have been under a rock and if the company does not turnout its outlook it may become extinct. Avon is down 70% of its door to door sales. The second quarter also looked glim according to chief executive Sheri Mcloy due to the numerous issues facing the consumer retailer. The company leaders are working to improve the top lines by improving cost structure and cash generation. The company aims to instill a more disciplined accountability structure. It did not help that over that past year the feds probed to find bribery and the unfavorable numbers overseas has made the investors unhappy.
The company is reassessing its long term business plan and some layoffs maybe on the table to stabilize the budget. The company is still trucking on, fighting off 10.7 billion dollar buyout from Coty’s Inc. a fragrance company. The company is hopeful that new exec Ms. Coty from Johnson and Johnson will breathe new air into the company. Andrea Jung has stepped down from the position in December but still serves as a chairman. In the last two years profit fell from 206.2 million to 61.6 million. Let’s hope this company can turn around before it turns into another has been.