Avon Products Inc. threw another curveball at shareholders
Monday, postponing a long-anticipated investor meeting where it was
to outline plans to turn around the struggling company.
CEO Sherilyn McCoy had prepared investors to expect a strategy
update at the meeting, originally scheduled for May 13. Now, the
company says the meeting will be suspended until the fall.
New York-based Avon said the delay will allow its newly
appointed chief financial officer, James Scully, "adequate time to
prepare for a more robust discussion at the meeting." But questions
were immediately raised about Ms. McCoy's future.
The CEO was recruited three years ago from Johnson & Johnson
to lead a turnaround. She overhauled the top management team and
brought an end to a multiyear bribery probe that drained cash and
management time. But so far, she has struggled to make progress
correcting years of dismal results and shrinking representative
ranks at the beauty company.
Avon's stock, which is down about 45% in the past 12 months, was
removed from the S&P 500 last month. The company declined to
comment.
Mr. Scully's appointment was announced Jan. 28, and he began his
duties as chief financial officer at Avon on March 9. Avon's
mid-May meeting date has been anticipated since January 12, when
the company announced it would host a meeting with Wall Street
analysts to outline the company's strategies and outlook.
The May meeting was intended to compensate for Avon's decision
not to present at a closely watched, widely attended consumer
product industry conference last February.
Avon plans to announce its first-quarter results on April 30,
and the company said it would provide an update on its turnaround
progress then.
Ms. McCoy's efforts to improve sales have been stymied lately by
a stronger dollar. Avon, which books 88% of its sales outside the
U.S., said in February that the stronger dollar would have a
significant effect on sales this year. That pressure has offset
progress Ms. McCoy has made in some markets.
Joann S. Lublin contributed to this article.
Write to Ellen Byron at ellen.byron@wsj.com
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