Avon considers sale of North American operations

Avon Products, an international manufacturer and direct selling company in beauty, household, and personal care categories, is contemplating sale of its North American business as it explores strategic alternatives.

The company is looking for strategic options to fix its fragile financial results, The Wall Street Journal reported, citing people familiar with the matter. However, the deal is not likely to happen.

The door-to-door beauty company generates $8.9bn in annual sales.

The company suspended its analyst meeting until the fall which was scheduled for May due to the structural review.

With the postponement, the company will have enough time to prepare for a more robust discussion at the meeting.

Avon’s North American business, which accounted for 14% of the total revenue in 2014, has posted losses for the past three years.

With $1.2bn in annual sales, the company’s North America business has witnessed steady declining sales over the past seven years, including a 17% drop in 2014.

Headquartered in New York, Avon Products manufactures and markets beauty and related products worldwide. It offers beauty products, such as skincare, and personal care products, as well as fragrances and color cosmetics.