Avon Products, Inc. (NYSE:AVP), leading manufacturer of beauty products, has announced recently the resignation of the company’s Chief Financial Officer (CFO) and Executive Vice President, Kimberly Ross, which will take place on October 2. The current Corporate Controller and Vice President, Robert Loughran will emerge as the company’s new CFO. Jim Cramer has discussed the news during CNBC’s Stop Trading.
Avon Products, Inc. (NYSE:AVP) is currently experiencing difficulties in pumping up their stock price and the transition is seen as a bad move by at least some analysts.
“I find that when I hear a CFO resigns, I hate it, even more than a CEO, I hate when the numbers keeper resigns. Kimberly Ross just resigned from Avon (AVP) to go to be the CFO of Baker Hughes, a very well-run company. Notice, Citi downgrades on this, you cannot have something like this just be thrown out there and not be skeptical about what’s really happening at Avon […],” said Jim Cramer.
In the beginning of the year Avon Products, Inc. (NYSE:AVP)’s stock price plummeted deep after the company agreed to pay $135 million to put out its long-standing federal charges, which accused the cosmetics manufacturer for paying bribes in China and other countries. It’s been a long-lasting stain on Avon Products, Inc. (NYSE:AVP)’s image and the effects seem to linger on, directly affecting the stock’s valuation. Also, strong competition has been hindering the growth of all the companies in the beauty products industry, but not with the same magnitude. Some managed to bypass the obstacles, i.e. L’Oreal SA (ADR) (OTCMKTS:LRLCY)’s price is also in free-fall, but year by year the company is relatively stronger.
Avon Products, Inc. (NYSE:AVP) sells at little above $13 and is apparently experiencing a slow further cadence as Mr. Cramer suggested that it is too early to go bullish on the stock. After all of the fuss and uncertainty created it might prove that bottom fishing the company’s shares might not bring the expected profits to the investors.