Originally published at www.seclive.com
Avon Products Inc. (NYSE:AVP) announced its financial results for the third fiscal quarter 2013, posting a quarterly loss of $5.5M. Avon was offered a settlement last month by the Securities and Exchange Commission that was much greater than the $12M that Avon offered. The undisclosed sum offered by the SEC is said to have high adverse impacts to the company. The settlement is related to an investigation in which Avon executives are accused of paying bribes in China. Avon posted a net loss of $5.5M, or $0.01 loss per share, compared to the $31.6M and $0.07 earnings per share a year ago. Revenue dropped 7.5% to $2.32B, with North American sales falling a steep 19% to $328.6M as the number of sales representatives declined. CEO Sheri McCoy, who took over in April 2012, acknowledged that it was a tough quarter, naming negative macroeconomic conditions and poor North American sales as chief reasons.
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