Despite the struggle of Avon’s North American business, shareholders were silent during the question and answer session with Avon Products Inc. chief executive officer Sheri McCoy on Wednesday morning at the company’s annual shareholders meeting.
To that end, there was no mention of selling the North American business. The gist of the meeting revolved around its struggle and how the company is looking to grow by targeting a new generation with a fresh brand positioning called Beauty for a Purpose, which will extend to consumers by the end of the year.
“Avon’s turnaround journey has taken longer and has been more complex than I expected,” said McCoy. “While we’ve made significant progress in most parts of the business, our North American business continues to be challenged.”
She added, “I believe that we are firmly on the path to return Avon to its sustainable profitable growth.”
Meanwhile, Susan Kropf, who served as president and chief operating officer of Avon from 2001 to 2006, was elected as a board member for the company.
Speaking about the company’s performance, McCoy said financially 2014 was a challenging year and delivered a better performance in the second half of the year, improving both top and bottom line.
In 2014, in constant dollars, the company delivered flat revenue performance year on year. Beauty sales were flat and active sales representatives declined 5 percent offset by a 5 percent increase in average order.
But McCoy is certain about how to grow the business.
She noted, “Our growth strategy is clear, it’s about active representatives, building our brand and proving consumer access to our products.”