One of the leading cosmetics maker, Avon Products which has been under pressure from activist investor Barington Capital, have disclosed that Sheri McCoy will step down as chief executive come March 2018.
Sheri McCoy has led the company for five years and sits on the board, but there has been some external pressure from activist investors for a change in leadership.
Avon said Thursday that it has hired an executive search firm to help find McCoy’s successor.
“The platform is in place for a new CEO to continue accelerating the pace of change and take Avon to sustainable profitable growth,” McCoy said in a release.
According to Reuters, Barington renewed its pressure after Avon reported a surprise loss in the quarter-ended March and demanded McCoy be removed, accusing her of overseeing “a tremendous destruction of shareholder value” and questioned her ability to manage the business effectively.
Since McCoy took the top job at the cosmetics maker in April 2012, the shares have fallen nearly 85 percent. The company has reported higher quarterly sales only twice since 2015.
The company had reported a 3 percent drop in quarterly revenue as demand fell in most of its markets including the northern part of Latin America and Europe, Middle East & Africa.
Barington did not immediately respond to a request for comment outside regular business hours. The company’s shares were marginally down in premarket trading.
Avon LLC is one of the leading social selling beauty company in North America, with independent sales Representatives across the United States, Puerto Rico and Canada. New Avon’s product portfolio includes award-winning skincare, color cosmetics, fragrance and personal care products, featuring iconic brands such as ANEW, Avon Color, mark., and Skin So Soft, as well as fashion and accessories. Avon has a 130 year history of empowering women through economic opportunity, and the company also proudly supports the Avon Foundation for Women in its efforts to end breast cancer and domestic violence.