The plan includes upgraded packaging and new products, according to an analyst note by Barclays analyst Lauren Lieberman. Avon presented at the Barclays Global Consumer Staples Conference on Tuesday.
“The company gave several examples of new product/brand launches that are set [for the fourth quarter] into [the first quarter] primarily in color, which are aimed for Avon to capture a bigger share of mass beauty,” Lieberman wrote. “Avon is also expanding its Mark brand to Latin America,” she continued. “Mark is targeted toward 25-34 year old ‘color enthusiasts’ and to date has played only a limited role in the developed world. In skin, Avon is in the midst of launching Anew Ultimate Supreme Dual Elixir, a serum and oil antiaging product with claims that it has five [times] more moisture than the department store brand.”
The company also provided more details on where it is with its turnaround plan, which chief executive officer Sheri McCoy unveiled in January. Chief financial officer James Scully outlined progress in the company’s $350 million cost-cutting plan, nothing that the North America business was officially separated in a spin-off to Cerberus Capital Management in March, that nine of the top 10 markets grew in the second quarter, that active representative growth is on track, that execution of $70 million in cost savings for 2016 was on track and that strategic alternatives are still being considered for the China business.
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“From our perspective, this was the most confidently we’ve ever heard management discuss its business and growth potential,” Lieberman continued.
Avon’s also been upping its social media presence, growing its global social media reach by 16 percent in the past six months. The business said Instagram is its fastest-growing network, with almost 1 million followers and 53 percent growth. The company’s stock closed up 9 cents Tuesday, to $5.92, but dipped slightly in after-market trading.