Avon Products, Inc. (NYSE: AVP) announced its financial results for the fourth quarter, with both earnings and revenues missing expectations.
For the fourth quarter of 2016, revenues dropped 2% to $1.57 billion, almost unchanged in constant dollars, but was below estimates of $1.60 million. Diluted loss per share from continuing operations was $0.03 per share, and adjusted earnings per share from continuing operations was $0.01 per share, which missed estimates of $0.09 per share.
For the full-year 2016, revenue declined 7% to $5.7 billion, and diluted Loss per share from continuing operations was $0.25 per share.
“We made good progress in the first year of our Transformation Plan, exceeding our cost savings targets, improving our profit margin, and significantly strengthening our balance sheet. However, the financial results for the fourth quarter were disappointing, largely due to the decline in Active Representatives and an unexpected increase in bad debt expense,” Sheri McCoy, the Chief Executive Officer of Avon, said in the statement.
“As we move into 2017, we are taking actions to deliver more consistent performance across our markets, with Representative engagement remaining a key priority in our growth plan, while navigating continued challenging global economic and political headwinds,” she said.