Avon has reported ‘unsatisfactory’ Q1 results, which have caused shares to dive 9.6 percent at $2.26 last week.
Despite the direct sales company narrowing its net loss to $20.3 million from $36.5 million year on year, the number of Avon door-to-door salespeople contributing to revenue fell 4 percent, accounting for the biggest drop since 2015.
While the company reported an above average revenues rise of 5 percent to $1.39 million, beating expectations of $1.35 billion, CEO Jan Zijderveld stated the company was looking to a turnaround strategy with ‘deliberate urgency’.
He stated, “Avon’s first-quarter results were unsatisfactory and do not represent the underlying potential of the business.
“We are already implementing near-term fixes that support the success and satisfaction of our representatives — starting with actions to improve service delivery,” he said. “Our long-term mission is clear, to return Avon to a competitive market position, and we are moving with deliberate urgency to design our turnaround plan.”
Zijderveld stated he had spent the first 90 days of his new role conducting a comprehensive review of Avon’s operations, affirming, “I’m still as convinced as ever of the potential of the business.”