Andrea Jung: Avon Says She’s Out
Andrea Jung, former Executive Chairman of Avon, will be stepping down from her position by the end of the year, the company confirms.
Jung has had a successful run with Avon, beginning in 1999 when she began to re-brand the name. She was credited with injecting a new, youthful feel to the company’s products, but after 2005, sales began to take a slow dive and haven’t quite recovered.
“Jung’s exit marks the end of the transition to the new management team at Avon, which should be positively received by the market,” said Atlantic Equities analyst Victoria Collin.
The brand’s reputation has been marred in recent years due to–among other things–a foreign bribery probe and a botched restructuring plan that led to missed earnings. The announcement that Jung will be stepping down to take on the role of senior advisor has rejuvenated investors, causing Avon shares to climb steadily.
“It’s just one more way that the new management group is trying to close the book on the most recent troubled chapter the company has been living through in the last couple of years,” said analyst Erin Lash.
Jung seems satisfied with her new role and released a statement about the announcement.
“It has been a great privilege to serve the company over the past two decades, most notably the millions of Avon representatives and thousands of associates around the world,” she said.