How Is Avon Products’ Beauty Business Expected To Trend?

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Avon’s beauty products division contributes to around 75% of its revenues and around 71% of our stock price valuation for the company. Though Avon is the leader in the global direct selling beauty business, the company last witnessed growth in its top line in 2011.  After the investment from Cerberus Capital and the sell-off of 80% of its weak North American business, Avon has undertaken multiple steps to streamline operations and manage costs. However, going by its performance trend so far, we are still conservative about Avon’s future revenue growth. We expect Avon’s beauty products’ revenues to fall by a CAGR of ~2% over the next 5 years.

avp beauty business growth final

 

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Avon Products

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