Avon Products (AVP) fell 6.7% to close at $5.44 per share during the first week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.2%, 5.2%, and 34.3%, respectively, as of September 9. AVP is trading 3.5% below its 20-day moving average, 14.1% above its 50-day moving average, and 31.1% above its 200-day moving average.
Related ETFs and peers
The Oppenheimer Mid-Cap Revenue ETF (RWK) invests 0.75% of its holdings in Avon. The ETF tracks a revenue-weighted index of the S&P MidCap 400. The YTD price movement of RWK was 8.5% on September 9.
The iShares Morningstar Small Value ETF (JKL) invests 0.35% of its holdings in Avon. The ETF tracks a market-cap-weighted index of US small-cap value stocks. The index stocks from the 90th to 97th percentile of the market-cap spectrum, using fundamental factors.
The market caps of Avon Products’ competitors are as follows:
Latest news on Avon Products
Jose Armario has been elected to Avon Products’ board of directors, effective September 6, 2016, and will take responsibility for the compensation and management development committee.
Performance of Avon Products in 2Q16
Avon Products reported 2Q16 total revenue of $1.4 billion, a fall of 8.3% from the total revenue of $1.6 billion in 2Q15. Sales of the beauty category fell 7.5% and sales of the fashion and home category fell 7.3% between 2Q15 and 2Q16. Revenue from EMEA (Europe, the Middle East, and Africa), South Latin America, North Latin America, and Asia-Pacific fell 2%, 12%, 5%, and 10%, respectively. The company’s cost of sales as a percentage of total revenue and operating income rose 0.89% and 6.0%, respectively, between 2Q15 and 2Q16.
Its net income rose to $33.0 million, and EPS (earnings per share) fell to $0.06 in 2Q16, compared with $28.8 million and $0.07, respectively, in 2Q15. It reported adjusted EPS of $0.07 in 2Q16, a fall of 22.2% from 2Q15.
AVP’s cash and cash equivalents and inventories rose 7.9% and 6.7%, respectively, between 4Q15 and 2Q16. Its current ratio rose to 1.5x in 2Q16, compared with 1.1x in 4Q15. Next, we’ll look at Hormel Foods (HRL).