Avon Products (AVP) fell 3.0% to close at $5.17 per share during the third week of December 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.0%, -8.3%, and 27.7%, respectively, as of December 23.
AVP is trading 4.9% below its 20-day moving average, 11.7% below its 50-day moving average, and 3.6% above its 200-day moving average.
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Latest news on Avon Products
On December 19, 2016, Chris Wermann was appointed Avon Products’ chief communications officer, effective January 3, 2017. He’ll report to Sheri McCoy, the company’s chief executive officer. Wermann will take care of corporate and internal communications, corporate social responsibility and sustainability, and operational oversight of the Avon Foundation for Women.
Performance in 3Q16
Avon Products reported total revenue of $1.41 billion in 3Q16, a fall of 2.1% from its total revenue of $1.44 billion in 3Q15. Sales of its Beauty and Fashion & Home categories fell 1.8% and 4.1%, respectively, in 3Q16 compared to 3Q15. The company’s gross profit margin fell 20 basis points, and its operating margin rose 480 basis points in 3Q16 compared to the same period last year.
Avon’s gross margin was impacted negatively by foreign exchange during the quarter. The negative impact was offset by a fall in its supply chain costs and inflationary and strategic pricing. The rise in its operating margin was due to its cost-saving initiatives and its price mix, which were offset by the negative impact of foreign exchange.
Avon’s net income and EPS (earnings per share) rose to $36.0 million and $0.07, respectively, in 3Q16 compared to -$697.0 million and -$1.58, respectively, in 3Q15. It reported adjusted EPS of $0.02 in 3Q16 compared to -$0.11 in 3Q15.
Avon’s cash and cash equivalents and inventories rose 31.3% and 13.2%, respectively, in 3Q16 compared to 4Q15.
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