Avon Products, Inc. (AVP)
by Zacks Equity ResearchJune 08, 2012 | Comments : 0 Recommended this article: (0)
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The disappointing results were primarily due to sluggish performances in every category, coupled with increased input costs and operating expenses. The North American market remains sluggish, with sales falling 4% in the quarter. Moreover, the company's initiatives to change product mix and reposition the business in the U.S. market will require significant advertising and promotional expenditures, which may dent its margins.
Further, we believe Avon has missed the opportunity of reviving itself citing Coty's withdrawal of its takeover bid. Currently, we are maintaining a long-term Underperform recommendation on the stock and a Zacks #5 Rank.
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