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NEW YORK, United States — Avon Products Inc. fell in early trading after posting an unexpected third-quarter loss, hurt by the strong dollar and a new tax in Brazil.
The loss was 11 cents a share, excluding some items, the New York-based company said Wednesday in a statement. Analysts had estimated Avon would report a profit of 7 cents a share.
Chief Executive Officer Sheri McCoy is trying to snap a string of three years of losses as Avon struggles with changing tastes among younger cosmetics buyers and the waning relevance of its door-to-door sales model in its home market. The company faced the added pressure of foreign-currency effects and a new industrial production tax in Brazil in the quarter. Avon on Wednesday maintained a forecast that free cash flow this year will be positive, but said the figure will be less than its previous forecast of $100 million.
The shares fell as much as 12 percent to $3.81 in premarket trading in New York. Avon already had slid 54 percent this year through Tuesday.
By Lauren Coleman-Lochner; editors: Nick Turner, Kevin Orland.
