Executive Summary

• Avon reported 1Q16 revenues of $1.31 billion, down 16% year over year but up 2% in constant-currency terms and up 3% in constant currency excluding referrals. Adjusted EPS was $(0.07), missing the consensus estimate of $0.03.
• The results were in line with management’s expectations, but missed analysts’ estimates. The company is going through significant reorganization and experiencing the impact of the strengthening dollar.
• The company expects to save $20 million from supply chain and sourcing initiatives in 2016.