[Direct Report Network Beijing November 13th] (Red commercial network)Avon's sales representatives have contracted steadily in the last three quarters, and earnings and sales have fallen short of market expectations. The group's stock price jumped at most 10.2% last Thursday, and it was $1.76 lower.

Avon Products Inc. Avon's active sales representatives declined by 5% year-on-year in the third quarter to September 30, and comparable sales fell by 4% year-on-year. Chief Executive Jan Zijderveld said in his earnings report that the overall performance of the last quarter was still unsatisfactory, but he was encouraged by the group's ability to take prompt action against major markets.

During the period, the group has completed its restructuring plan since 2016 and achieved a three-year cost savings target of $350 million. Since last month, management has introduced a new round of cost reduction measures, aiming to further save $400 million over the next three years by improving revenue management and efficiency. Over the past month, the new plan has pushed the gross interest rate up by 10 basis points in the third quarter, and adjusted to 61.3%.

Avon Products Inc. announced in September that it would sell its headquarters in Rye, New York, and cut 100 jobs, while the remaining employees would be absorbed by Suffren, New York. The group has moved its headquarters to London after selling its controlling stake in the U.S. business to Cerberus Capital Management LP in 2016.

Due to the weakness of key markets such as Brazil, Russia and the United Kingdom, the two largest markets that together generate 3/4 of the group's revenue recorded zero growth and a 3% decline in EMEA fixed exchange rate revenue in southern Latin America, while in northern Latin America and the Asia-Pacific region, 5% and 6% respectively.

Avon Products Inc.'s revenue in the third quarter totaled $1,424.2 million, basically unchanged from $1,417.8 billion in the same period last year. Excluding $168 million in one-time tax returns from the Brazilian market, adjusted revenue fell by 11.4% to $1,255.8 million annually, less than the market's expected $1.32 billion.

Net profit rose more than 85 times to $1138 million from the same period last year. EPS also climbed to $0.21 from $0.01 in the same period last year, adjusted to zero, while the market expected to be $0.01.

By Wednesday's close of $1.96, Avon Products Inc. (NYSE: AVP) had fallen 10% so far in 2018. In mid-September, the Wall Street Journal said that Brazilian beauty giant Natura Cosmeticos SA (NATU3.SA), which acquired The Body Shop last year, was in talks to buy Avon Products Inc. Avon, spurring Avon Products Inc. (NYSE: AVP) to rise for five consecutive trading days, a 17.3% rise. Natura Cosmeticos SA promptly clarified the report.