CORRECT: Avon Products' Stock Drops After Profit, Sales Miss Expectations

Avon Products Inc. shares slumped 2% in premarket trade Thursday, after the beauty products company reported first-quarter profit and sales that fell below expectations. The company said the net loss for the quarter ended March narrowed to $147.3 million, or 33 cents a share, from $168.3 million, or 38 cents a share. Excluding non-recurring items, adjusted earnings per share came in at 4 cents, compared with the FactSet consensus of 7 cents. Unfavorable currency movements reduced adjusted EPS by 21 cents. Revenue declined 18% to $1.76 billion, below the FactSet consensus of $1.82 billion, amid declines in all geographic regions and currency pressures that were greater than expected. Net cash used during the quarter was $198 million, up from $113 million a year ago. For 2015, the company still expects 2015 revenue to be "up modestly" from 2014, but said operating margin is now expected to be 2 percentage points lower than previously anticipated because of dollar strength. "Despite continued foreign exchange pressure, I'm really impressed with how well our teams in market are managing in this volatile environment," said Chief Executive Sheri McCoy. The stock has dropped 7.7% year to date through Wednesday, while the S&P 500 has gained 2.3%.