Margin Improvement Persists for Avon, but Competitive Headwinds Abound; Shares Far From a Bargain
On the surface, no-moat Avon Product’s third-quarter results (which included 4% underlying sales growth and 270 basis points of adjusted operating margin expansion to 7%) strike us as a notable improvement for an operator that has been reeling from intense competitive pressures, its own executional missteps, and unfavorable foreign exchange. Digging deeper though, we contend results weren’t as favorable. For one, half of Avon’s revenue growth resulted from Argentina, a volatile and highly inflat...Avon Products is a manufacturer and marketer of beauty and related products. The company's product categories are Beauty and Fashion and Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products and nutritional products. The company's business is conducted primarily in one channel, direct selling. The company's reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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