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Avon Products Tumbles Following Q4 Print, Co. Cites Currency Woes


Shares of Avon Products, Inc. (NYSE: AVP) tumbled more than 15 percent on Thursday after the company reported its fourth-quarter results.

Avon Products said that it earned $0.00 per share on revenue of $1.6 billion. Wall Street analysts were expecting the company to earn $0.08 per share on revenue of $1.82 billion.

Avon Products noted that its total revenue for the quarter fell 20 percent year-over-year, but was actually higher by 3 percent in constant dollars (excluding the divestiture of Liz Earle).

By region, revenue in Latin America was lower by 26 percent (unchanged in constant dollars), lower by 44 percent in Brazil (down 14 percent in constant dollars), lower by 13 percent in Mexico (up 6 percent in constant dollars).

Asia Pacific, U.K., Europe, Middle East & Africa sales were also impacted by negative currency rates while sales in Russia were reported lower by 8 percent, but actually surged higher by 29 percent in constant collars.

Total revenue for the full fiscal year 2015 fell 19 percent to $6.2 billion, but were actually higher by 3 percent in constant dollars.

"Our operating performance for the fourth quarter and fiscal year was in-line with our most recent outlook. Looking back at 2015, our key local markets drove steady improvement in overall performance. Importantly, we improved year-on-year Active Representative trends – with full-year growth of 1%," said Sheri McCoy, Chief Executive Officer of Avon Products, Inc. "We are on track to close our partnership with Cerberus and fully engaged in executing our transformation plan."


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