الرئيسية
By Bradley Dorfman
(Reuters) - Avon Products Inc (NYSE:AVP)
is looking for a new chief executive to replace Andrea Jung, who has
lost the confidence of Wall Street after a myriad of problems, including
a federal bribery probe and weak sales in key international markets.
Jung will remain as executive
chairman of the company, and work with a committee of board directors to
find an external CEO candidate, Avon said in a statement on Tuesday.
Avon shares rose 5.4 percent on the news in after-hours trading after falling by almost half this year.
"The stock has been cut in half this
year," Ali Dibadj, analyst at Sanford C. Bernstein, said. "The trust
between investors and management has been severed. There have been a few
times where expectations have been laid out there and have not been
met."
Avon in October said that the
Securities and Exchange Commission was investigating the company's
contact during 2010 and 2011 with certain analysts and other
representatives of the financial community.
The company also reported
third-quarter profit that fell below analyst expectations, with Brazil
weighing on earnings as the result of implementation of a new computer
system, while tough economic conditions also hurt sales in other
markets.
Jung has been Avon's CEO since 1999
and is credited with helping to grow the company late 1990s and early
2000s, as it continued to expand, bringing the prospect of a career or
even just some extra pocket money to women from South Africa to South
Korea.
(Reuters) - Avon Products Inc (NYSE:AVP)
is looking for a new chief executive to replace Andrea Jung, who has
lost the confidence of Wall Street after a myriad of problems, including
a federal bribery probe and weak sales in key international markets.
Jung will remain as executive
chairman of the company, and work with a committee of board directors to
find an external CEO candidate, Avon said in a statement on Tuesday.
Avon shares rose 5.4 percent on the news in after-hours trading after falling by almost half this year.
"The stock has been cut in half this
year," Ali Dibadj, analyst at Sanford C. Bernstein, said. "The trust
between investors and management has been severed. There have been a few
times where expectations have been laid out there and have not been
met."
Avon in October said that the
Securities and Exchange Commission was investigating the company's
contact during 2010 and 2011 with certain analysts and other
representatives of the financial community.
The company also reported
third-quarter profit that fell below analyst expectations, with Brazil
weighing on earnings as the result of implementation of a new computer
system, while tough economic conditions also hurt sales in other
markets.
Jung has been Avon's CEO since 1999
and is credited with helping to grow the company late 1990s and early
2000s, as it continued to expand, bringing the prospect of a career or
even just some extra pocket money to women from South Africa to South
Korea.