The beauty product maker, Avon Products, Inc. (NYSE:AVP), has somehow failed to make over its own image that led to its exit from S&P 500. The company will now join others on the S&P MidCap 400. The event could be called as degradation for the company that has been striving hard to cement its position, but lost grip. Resultantly, the stock of the company also fell by 5.85% to $7.72 during the last trading session.
Avon Products, Inc. (NYSE:AVP) has time till March 20 to enjoy its presence on the index, after which it will be replaced by Hanesbrands (NYSE:HBI), an apparel marker. Ever since CEO Sheri McCoy took the helm of the company, there have been more of failures than success. McCoy took over from previous Andrea Jung, who was seen responsible for Avon Products, Inc. (NYSE:AVP)’s lackluster growth. But, McCoy did little to overturn, rather her tenure in the company only made it fall further. This is reflective from the company’s revenue in 2012 at $10.7 billion that came down to $8.9 billion in 2014, under McCoy. Moreover, the loss from continuing operations expanded from $38 million in 2012 to $385 million in 2014.
Silent on matters
Avon Products, Inc. (NYSE:AVP) departure from S&P 500 was predictable given its negative return of 3.6% this year as against a positive return of 2.1% delivered by S&P 500. In its fourth quarter earnings, the company missed the analysts’ estimates both in terms of revenue and earnings per shares. Its Q4 EPS came in at $0.20 on revenues of $2.34 billion versus the estimate of $0.25 EPS on $2.54 billion revenue. The company has been silent on its disheveled affairs while McCoy has been shying away from making any more promises. In view of the lack of interest, it could be expected that the company is not prepared or planning to do well any longer.