Avon Products Inc. stock climbed to one of its highest levels in weeks on the possibility that Sheri McCoy is set to leave her post as chief executive officer.
Shares of the company rose by 4.7 percent to $3.66, one of the highest levels for over the last month, which has seen the stock hover between $3.40 and $3.50.
On Tuesday, Avon also revealed that executive vice president and chief commercial officer John Higson will retire in September and is to be replaced by Miguel Fernandez, a former Herbalife executive who will take the title of global brand president.
Should McCoy retire, it will also come after a scathing rebuke of her roughly five years at Avon’s helm by activist investors Barington Capital Group and NuOrion Partners AG.
In early May, Barington said McCoy’s tenure has coincided with a “tremendous destruction in shareholder value,” claiming Avon’s stock has fallen by more than 80 percent since she was named ceo.
Barington has been agitating for change at Avon since 2015, when it began pushing for new board directors and company leaders, which at the time was said to have launched a search to replace McCoy.
The activist acknowledged in May that Avon has taken steps to improve its operations, but said “efforts need to be dramatically intensified under new leadership.”
Avon posted a $36.5 million loss for the first quarter on a slight sales gain of 1 percent to $1.3 billion.
A representative of Avon and Barington could not be reached Thursday for comment.
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