NEW YORK (AP) -- When Avon Products Inc. reports second-quarter results before the market opens on Wednesday, the direct beauty product seller could shed some light on what initiatives new CEO Sherilyn McCoy plans for the company.
WHAT TO WATCH FOR: McCoy, who started on the job about three months ago, has said she plans to review every aspect of the business. New York-based Avon, which makes brands including Skin So Soft and Anew lotion and Mark cosmetics, is trying to reverse three years of lackluster growth, a slump which led to the ouster of longtime CEO Andrea Jung and the hiring of McCoy, a former Johnson & Johnson executive, in April.
Investors will also be looking for any update on the company's long-running bribery probe, which started in 2008 in China and has spread to other countries. The Wall Street Journal on Monday said federal prosecutors were interested in speaking to Jung in their own investigation, citing unnamed sources. Avon spokeswoman Jennifer Vargas said the company had no comment about the report.
WHY IT MATTERS: Avon sells discretionary items like cosmetics and jewelry, so any uptick in revenue would be a positive sign for consumer spending. It also makes most of its revenue overseas, so its sales figures are a barometer of the global economy.
WHAT'S EXPECTED: Analysts expect net income of 21 cents per share on revenue of $2.68 billion, according to FactSet.
LAST YEAR'S QUARTER: The company earned 38 cents per share, or 48 cents per share excluding costs related to the devaluation of the Venezuelan currency, on revenue of $2.68 billion.
