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Avon's FY 2010 Marred By "Execution Factors" In Key Markets

This article was originally published in The Rose Sheet

Executive Summary

For direct-seller Avon Products, fiscal 2010 was "a tale of two halves," with "executional" challenges in Brazil and Russia in the third and fourth quarters hampering sales and compromising operating margins, company execs indicated Feb. 8.

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New CEO Sheri McCoy comes to Avon from Johnson & Johnson with a strong background in consumer products and a “significant turn-around track record,” according to Avon. However, “there is no cape flowing behind her,” notes Morningstar analyst Lauren DeSanto, speculating that Avon’s problems may require superhuman powers.

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