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Thursday, February 11, 2016

Avon Products (AVP) reported 4Q earnings on Thur 11 Feb 2016 (a/h)

** charts before earnings **







** charts after earnings **





  • 2nd day after earnings:


  • 5 months later:




Avon Products misses by $0.08, misses on revs :
Reports Q4 (Dec) net of breakeven, $0.08 worse than the Capital IQ Consensus of $0.08; revenues fell 20.2% year/year to $1.61 bln vs the $1.82 bln Capital IQ Consensus.
  • In January 2016, the Company announced a Transformation Plan, which includes cost reductions in an effort to continue to improve its cost structure and to enable the Company to reinvest in growth. As a result of this plan, the Company expects pre-tax annualized cost savings of approximately $350 million after three years, with an estimated $200 million from supply chain reductions and an estimated $150 million from other cost reductions. These pre-tax cost savings are expected to be achieved through restructuring actions as well as other cost-savings strategies that will not result in restructuring charges. The Company plans to reinvest a portion of these cost savings in growth initiatives, including media, social selling and information technology systems that will help the Company modernize its business. The Transformation Plan was initiated in order to enable the Company to achieve its long-term goals of low double-digit operating margin and mid single-digit constant-dollar revenue growth.

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