Avon CEO to re­sign post un­der pres­sure

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM -

LON­DON — Avon Prod­ucts said on Thurs­day that its chief ex­ec­u­tive, Sher­i­lyn McCoy, would step down at the end of March as the door-to-door seller of beauty prod­ucts has faced pres­sure from ac­tivist in­vestors to re­shape its man­age­ment and speed up its turn­around.

The an­nounce­ment is the lat­est suc­cess for ac­tivist share­hold­ers, who have put some of the world’s largest com­pa­nies in their sights, push­ing for busi­nesses to stream­line their op­er­a­tions, shake up their boards or re­vamp their strate­gies.

Bar­ing­ton Capital Group and NuOrion Part­ners called on Avon Prod­ucts’ board of direc­tors ear­lier this year to re­place McCoy as poor re­sults weighed on its stock price. Me­dia re­ports first emerged in June that McCoy, who has been the top ex­ec­u­tive at Avon since 2012, was ex­pected to leave the com­pany.

Avon Prod­ucts on Thurs­day re­ported a net loss of $45.5 mil­lion in the sec­ond quar­ter — its third-con­sec­u­tive quar­terly loss. The com­pany also said its rev­enue fell by 3 per­cent. Its share price has fallen 40 per­cent this year.

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