Boston, MA 09/10/2014 (wallstreetpr) – Manufacturer of beauty and related products, Avon Product, Inc. (NYSE:AVP) has named its Vice President and Corporate Controller, Robert Loughran, as its acting Chief Financial Officer with effect from October 2.
CFO Resigns
Its current Chief Financial Officer, Kimberly Ross, has resigned from the company and would be available for a smooth transition to Robert Loughran, according to a statement from the company. In the meanwhile, Avon Product, Inc. (NYSE:AVP) would be searching for a permanent CFO.
Avon Product has not disclosed the reasons for the exit of its CFO and merely appreciated her partnership with the company in the last three years during its turnaround path. The company has expressed its confidence in the finance leadership team during the transitional period.
Avon Product, Inc. (NYSE:AVP) said that Loughran has joined it in 2004 as Assistant Controller and has been with the company for one decade. He assumed the role of Vice President and Controller in 2012. He has enough experience in the financial reporting having served 15 years in different capacities before joining Avon. He has also dealt with accounting and financial reporting of public companies. Significantly, he has worked with Deloitte & Touche LLP and PricewaterhouseCoopers LLP.
Analyst Comments
In a research note to clients, Citi Investment Research analyst, Wendy Nicholson, said that the exit of Kimberly Ross meant that she has left big shoes to be filled in, AP reported. The analyst pointed out that Ross has helped Silpada, a Jewelry company, to leave the weak markets enabling it to refinance its balance sheet.
However, in Avon, Nicholson said that a lot of work still needs to be done in its turnaround tactics. Since hiring a fresh person would take some time, there would be a problem in the interregnum even as the company is going through a turnaround plan.
Citi analyst also said that Avon is facing a problem of big overhead expenses and its internal controls or systems were still weak. She also said that Avon Product, Inc. (NYSE:AVP)’s cash flow was depressed, and many of the markets were still in confusion.
