Avon Faces Potential High Penalties Under SEC Deal; Q3 Sales Down 7%
This article was originally published in The Rose Sheet
Executive Summary
Avon says the impact of a settlement with the U.S. Securities and Exchange Commission and Department of Justice to resolve investigations into its foreign business practices in recent years could be significantly greater than planned for. Meanwhile, the firm works to rebuild its direct-sales platforms in North America, where declines in field representatives have created a drag on revenue.
You may also be interested in...
Avon Settlement With Feds Over Bribery Charges Could Reach $132 Mil.
Firm is optimistic that an end to negotiations with federal agencies regarding alleged misconduct in China could be on the horizon. However, the firm’s sales continue to suffer as the firm labors to right its business.
Avon Must Focus On Markets Abroad To Emerge From “Abyss” – Analysts
While the U.S. is still integral to Avon’s business, analysts believe that focusing on markets outside of the firm’s home country will be what brings about a turnaround for the direct seller.
Avon Clearing the Decks: Firm Ousts Cramb Amid Ongoing Investigation
Avon announces dismissal of Vice Chairman Charles Cramb in connection with firm’s internal investigation into possible breach of fiduciary duty and alleged violations of the Foreign Corrupt Practices Act. With CEO Andrea Jung on her way out as well, analysts see in the decay of Avon’s upper management glimmers of opportunity.