Last year, Avon Products Inc.’s (AVP) saw a big change. Sheri McCoy became CEO of the company. Within the first year as the company new spear header, McCoy hit the road, meeting with thousands of representatives, and even some former sellers, to hear what the door-to-door cosmetics seller could do better for the future. After her eye opening road trip, she decided what really is going on in the company. Her strategy includes embracing technology with mobile applications and putting brochures online, while adding more profitable home and fashion products to boost earnings using the company’s more than 6 million sales representatives. McCoy is cutting about 1,500 jobs and leaving the South Korea and Vietnam markets as part of a plan to save $400 million by the end of 2015. Other priorities also include an investment of as much as $200 million in information technology systems by 2016 and updating and repositioning brands such as its “Anew anti-aging line.” As far as the different influences of the stock prices, BMO Capital Markets reaffirmed the company’s outperform rating on shares of Avon Products (NYSE: AVP) in a research note released on Wednesday, Feb 20, 2012. They currently have a $25.00 price target on the stock, up from their previous price target of $23.00.
Sources
Coleman-Lochner , L. (2013, February). Avon CEO McCoy Embraces Technology to Reverse Profit Slump. Retrieved from http://www.bloomberg.com/news/2013-02-22/avon-ceo-mccoy-embraces-technology-to-reverse-profit-slump.html?cmpid=yhoo
Pery, J. (2013, February). Avon Products Stock Rating Reaffirmed by BMO Capital Markets (AVP). Retrieved from http://zolmax.com/avon-products-stock-rating-reaffirmed-by-bmo-capital-markets-avp/2940827/
