George Gutowski submits: Avon Products (AVP) recently released results (Feb 6 to be exact). Andrea Jung, chairman and CEO, commented:
With 9% revenue growth in the fourth quarter, we continue to feel good about the progress we are making against our turnaround plan.
A closer reading of the press release and associated financials indicates Q4 operating margin was 10.8%, versus 12.4% in the prior-year quarter. Accounts receivable were up 10% and inventories were up 12%. All this is occurring in the context of product simplification. The basic metrics are not aligning for growth; Avon is dragging some serious boat anchors that should be seeing improvement by now.
Avon Management’s Stock Sales Contradict Its Positive Outlook - SeekingAlpha
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