According to multiple sources, Avon Products Inc. Chief Executive Sheri McCoy is expected to step down. Sheri joined Avon as CEO in 2012.
In May an investor group led by Barington Capital Group, L.P. announced it was calling on the Board of Directors of Avon to immediately begin a search for a new CEO.
The request followed Avon’s second quarter filing, where it reported that revenue increased 2 percent to $1.3 billion, but had decreased 1 percent in constant dollars. Active representatives and ending Representatives, both from reportable segments, declined 3 percent and 1 percent, respectively.
Barington pointed to the fact that during Sheri’s five-year tenure as CEO Avon’s stock price had fallen by more than 80 percent–from $22.69 on April 9, 2012 to under $3.65 on May 5. Under her leadership, earnings per share have fallen from $1.20 in 2011, the year prior to her appointment, to a current consensus estimate of $0.32 for 2017, Barington added.