How Is Avon’s Home Products Division Expected To Trend?

-50.38%
Downside
5.57
Market
2.76
Trefis
AVP: Avon Products logo
AVP
Avon Products

Avon’s home products division contributes to around 11% of its revenues and around 12% of our stock price valuation for the company. Despite being the global leader in the direct selling beauty segment, Avon did not witness growth in its top line post 2011. However, the company has recently embarked on a recovery plan. 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. As a result, Avon has started witnessing improvements in its performance metrics. We recently upgraded Avon‘s stock price post its Q2 2016 earnings results. We expect Avon’s home products’ revenues to increase by a CAGR of ~1% over the next 5 years.

avp home products

Have more questions about Avon Products (NYSE:AVP)? See the links below:

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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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