Overhaul of Avon U.S. May Be Better Than Selling the Unit

Avon Products Inc., which is exploring a sale of its North American operations, may be better off just giving the unit a makeover.

Shares of the door-to-door cosmetics seller jumped 14 percent Tuesday after people familiar with the matter said it’s considering options for the division including a sale. The problem is, the unit is losing money -- so much so, that Avon is likely to get less for the unit than the business generated in revenue last year, according to analysts’ estimates. That’s assuming there would be any buyers, which may not be easy to find, said Ali Dibadj of Sanford C. Bernstein & Co.