Executive Summary

• Avon (AVP) announced at its Investor Day presentation today that sales from international operations rose by 3% on a constant-currency basis in 2015.
• The company saw total revenue of approximately $6 billion, constant-dollar revenue growth of 2% (a decline of 19% in reported dollars) and growth in active representatives of 1%.
• CEO Sheri McCoy said Avon plans to “drive out” $350 million in annual operating expenses—a new three-year goal—by cutting jobs, pouring more money into revamping its technology and services, and seeking alternatives for its China business.
• Shares of Avon went on a roller-coaster ride today. They were down initially as Avon execs gave their pitch, but spiked to a high of $2.79 after Cerberus Capital Management called them “significantly undervalued” and added that there were “zero concerns about liquidity” at Avon.