Beauty product specialist Avon (NYSE: AVP) stock sank 28% in May according to data provided by S&P Global Market Intelligence .
The slump has contributed to a rough run for investors lately, with shares down 12% in the past 12 months, compared to a 16% gain in the broader market.
May's decline was sparked by a first-quarter earnings report that didn't deliver the operating rebound investors were hoping to see. Revenue dipped by 1% after accounting for foreign currency shifts, compared to the flat result Avon posted in the prior quarter and the 2% gain it showed for the full 2016 fiscal year. The company lost $37 million, or $0.10 per share, compared to a loss of $166 million, or $0.36 per share, a year ago.
On the bright side, operating profitability improved thanks to a mix of cost cuts and higher prices. All told, management was happy with the results. "Our first quarter was broadly in line with our expectations and we remain confident in our strategic initiatives and the progress against our plan," CEO Sheri McCoy said in a press release.
Avon is currently in the second year of a three-year transformation plan that aims to put the retailer in position to generate consistently positive net income again. Investors had been hoping to see more progress on that score, with sales growth stabilizing and earnings turning higher. May's results instead pointed to volatility ahead as Avon works to keep its army of direct sales representatives engaged in the business despite the soft selling environment.
10 stocks we like better than Avon Products
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Avon Products wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 5, 2017.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.