Avon Announces Further Steps in Support of Company's Turnaround

       Avon Announces Further Steps in Support of Company's Turnaround

PR Newswire

NEW YORK, June 23, 2014

NEW YORK, June 23, 2014 /PRNewswire/ --Avon Products, Inc. (NYSE: AVP) today
announced additional actions as part of the company's ongoing turnaround
efforts to return Avon to sustainable, profitable growth.

These steps are related to continued efforts to right size the cost structure,
improve organizational effectiveness, streamline processes to gain
efficiencies and reduce cost across the organization. These actions are
primarily global headcount reductions of approximately 600 positions, largely
in the corporate organization and North America business unit.

Total charges to be recorded as a result of these actions are expected to be
approximately $45 million to $50 million before taxes, with approximately $40
million expected to be recorded in the second quarter of 2014.

The company expects these restructuring actions to result in annualized
savings of approximately $50 million to $55 million before taxes as part of
the $400 million Cost Savings Initiative. In connection with the
restructuring actions approved to-date associated with the $400 million Cost
Savings Initiative, we expect to realize annualized before-tax savings of
approximately $240 million to $250 million.

About Avon

Avon, the company for women, is a leading global beauty company, with $10
billion in annual revenue. As one of the world's largest direct sellers, Avon
is sold through more than 6 million active independent Avon Sales
Representatives. Avon products are available in over 100 countries, and the
product line includes color cosmetics, skincare, fragrance, and fashion and
home products, featuring such well-recognized brand names as Avon Color, ANEW,
Skin-So-Soft, Advance Techniques, and mark. Learn more about Avon and its
products at www.avoncompany.com.


Statements in this release that are not historical facts or information may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Words such as "expect" and similar expressions,
or the negative of those expressions, may identify forward-looking statements.
They include, among other things, statements regarding our anticipated or
expected results, future financial performance, various strategies and
initiatives (including our stabilization strategies, cost savings initiatives,
multi-year restructuring programs and other initiatives and related actions),
and costs and cost savings. Such forward-looking statements are based on
management's reasonable current assumptions, expectations, plans and forecasts
regarding the Company's current or future results and future business and
economic conditions more generally. Such forward-looking statements involve
risks, uncertainties and other factors, which may cause the actual results,
levels of activity, performance or achievement of Avon to be materially
different from any future results expressed or implied by such forward-looking
statements, and there can be no assurance that actual results will not differ
materially from management's expectations. Such factors include, among others,
the following:

  oour ability to improve our financial and operational performance and
    execute fully our global business strategy, including our ability to
    implement the key initiatives of, and realize the projected benefits (in
    the amounts and time schedules we expect) from, our stabilization
    strategies, cost savings initiatives, multi-year restructuring programs
    and other initiatives, product mix and pricing strategies, enterprise
    resource planning, customer service initiatives, sales and operation
    planning process, outsourcing strategies, Internet platform and technology
    strategies, marketing and advertising strategies, information technology
    and related system enhancements and cash management, tax, foreign currency
    hedging and risk management strategies, and any plans to invest these
    projected benefits ahead of future growth;
  othe possibility of business disruption in connection with our
    stabilization strategies, cost savings initiatives, multi-year
    restructuring programs, or other initiatives;
  oour ability to reverse declining revenue, margins and net income,
    particularly in North America, and to achieve profitable growth,
    particularly in our largest markets, such as Brazil, and developing and
    emerging markets, such as Mexico and Russia;
  oour ability to improve working capital and effectively manage doubtful
    accounts and inventory and implement initiatives to reduce inventory
    levels, including the potential impact on cash flows and obsolescence;
  oour ability to reverse declines in Active Representatives, to implement
    our sales Leadership program globally, to generate Representative
    activity, to increase the number of consumers served per Representative
    and their engagement online, to enhance branding and the Representative
    and consumer experience and increase Representative productivity through
    field activation programs and technology tools and enablers, to invest in
    the direct-selling channel, and to compete with other direct-selling
    organizations to recruit, retain and service Representatives and to
    continue to innovate the direct-selling model;
  ogeneral economic and business conditions in our markets, including social,
    economic and political uncertainties in the international markets in our
    portfolio, such as in Russia and Ukraine, and any potential sanctions,
    restrictions or responses to such conditions imposed by other markets in
    which we operate;
  othe effect of economic factors, including inflation and fluctuations in
    interest rates and currency exchange rates, as well as the designation of
    Venezuela as a highly inflationary economy and the devaluation of its
    currency, the availability of various foreign exchange systems, foreign
    exchange restrictions, particularly currency restrictions in Venezuela and
    Argentina, and the potential effect of such factors on our business,
    results of operations and financial condition;
  oany developments in or consequences of investigations and compliance
    reviews, and any litigation related thereto, including the ongoing
    investigations and compliance reviews of Foreign Corrupt Practices Act
    ("FCPA") and related United States ("U.S.") and foreign law matters in
    China and additional countries, as well as any disruption or adverse
    consequencesresulting from such investigations, reviews, related actions
    or litigation, including our ability tofinalize settlements with the
    United States Securities and Exchange Commission ("SEC") and the United
    States Department of Justice ("DOJ") with regard to the ongoing FCPA
    investigations on terms consistent with our current understandings with
    the government or, if we are able to reach such final settlements, what
    the timing of such final settlements will be or whether the SEC settlement
    will be authorized by the Commission or whether each of the settlements
    will receive the necessary court approvals, or if we are unable to reach
    such final settlements, the outcome of any subsequent litigation with the
    government which could have a material adverse effect;
  oa general economic downturn, a recession globally or in one or more of our
    geographic regions, or sudden disruption in business conditions, and the
    ability of our broad-based geographic portfolio to withstand an economic
    downturn, recession, cost inflation, commodity cost pressures, economic or
    political instability, competitive or other market pressures or
  othe effect of political, legal, tax and regulatory risks imposed on us in
    the U.S. and abroad, our operations or our Representatives, including
    foreign exchange or other restrictions, adoption, interpretation and
    enforcement of foreign laws, including in jurisdictions such as Brazil,
    Russia, Venezuela and Argentina, and any changes thereto, as well as
    reviews and investigations by government regulators that have occurred or
    may occur from time to time, including, for example, local regulatory
    scrutiny in China;
  othe impact of changes in tax rates on the value of our deferred tax
    assets, and declining earnings, including the amount of any domestic
    source loss and the type, jurisdiction and timing of any foreign source
    income, on our ability to realize foreign tax credits in the U.S.;
  ocompetitive uncertainties in our markets, including competition from
    companies in the cosmetics, fragrances, skincare and toiletries industry,
    some of which are larger than we are and have greater resources;
  othe impact of the adverse effect of rising energy, commodity and raw
    material prices, changes in market trends, purchasing habits of our
    consumers and changes in consumer preferences, particularly given the
    global nature of our business and the conduct of our business in primarily
    one channel;
  oour ability to attract and retain key personnel;
  oother sudden disruption in business operations beyond our control as a
    result of events such as acts of terrorism or war, natural disasters,
    pandemic situations, large-scale power outages and similar events;
  okey information technology systems, process or site outages and
  othe risk of product or ingredient shortages resulting from our
    concentration of sourcing in fewer suppliers;
  othe impact of any significant restructuring charges or significant legal
    or regulatory settlements on our ability to comply with certain covenants
    in our debt instruments;
  oany changes to our credit ratings and the impact of such changes on our
    financing costs, rates, terms, debt service obligations, access to lending
    sources and working capital needs;
  othe impact of our indebtedness, our access to cash and financing, and our
    ability to secure financing or financing at attractive rates;
  othe impact of possible pension funding obligations, increased pension
    expense and any changes in pension regulations or interpretations thereof
    on our cash flow and results of operations;
  oour ability to successfully identify new business opportunities, strategic
    alliances and strategic alternatives and identify and analyze alliance and
    acquisition candidates, secure financing on favorable terms and negotiate
    and consummate alliances and acquisitions, as well as to successfully
    integrate or manage any acquired business;
  odisruption in our supply chain or manufacturing and distribution
  othe quality, safety and efficacy of our products;
  othe success of our research and development activities;
  oour ability to protect our intellectual property rights; and
  othe risk of an adverse outcome in any material pending and future
    litigation or with respect to the legal status of Representatives.

Additional information identifying such factors is contained in Item 1A of our
2013 Form 10-K, as updated by our Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2014, and other reports and documents we file
with the SEC. We undertake no obligation to update any such forward-looking

SOURCE Avon Products, Inc.

Website: http://www.avoncompany.com
Contact: MEDIA: Jennifer Vargas, 212-282-5404; INVESTORS: Amy Chasen or
Natalija Jovasevic, 212-282-5320
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