Avon Products, Inc. (NYSE: AVP) CEO, Sheri McCoy, has been under activist investor pressure as it demands a change in position, following the poor fiscal year so far.
Barington Capital Group had been pushing for McCoy to step down from Avon since 2015, when it sent a letter saying that, “significant, immediate changes in leadership and strategic direction are needed.”
McCoy announced in a press release shortly after the second quarter earnings report that she will be stepping down.
The cosmetic company released its second quarter earnings Thursday before market open and posted a revenue loss of 3 percent to $1.4 billion. The company also reported a loss of 12 cents per share.
Avon has been struggling to reverse the decline the company has been seeing in the past years.
"Second-quarter performance fell below our expectations as we cycled a strong quarter last year. As previously guided, we expect the second half to yield a stronger performance based on our exciting product innovation plans and other initiatives to increase Representative activity," said Sheri McCoy, Chief Executive Officer, Avon Products, Inc. "We continue to implement the strategies defined in our Transformation Plan to better meet the needs of our Representatives and continue progress towards delivering sustainable profitable growth in the longer term."
For the past few years, Barington has been demanding McCoy to step down, but she has resisted and continued to hold her position.
McCoy was able to combat some of the pressure from Barington by agreeing to sell 80 percent to private investment firm Cerberus Capital Management.
After Avon had reported poor results in the first quarter, Barington pursued its demand again for McCoy to step down due to "a tremendous destruction of shareholder value" and questioned her ability to manage the business effectively.
CEO McCoy will step down next year on March 31st. The company also announced that it has hired Heidrick & Struggles executive search firm to find a replacement.