NEW YORK, Nov. 4 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today
announced that its president and chief operating officer, Andrea Jung, has
been named president and chief executive officer, succeeding chairman and CEO
Charles R. Perrin in his capacity as CEO. Mr. Perrin is retiring from Avon.
The company also announced that outside director Stanley C. Gault, has been
elected non-executive chairman of the board. All changes are effective
immediately.
Ms. Jung has been Avon's president since January 1998 and its chief
operating officer since July 1998. Previously, she held the company's top
marketing positions since joining Avon in January 1994.
Mr. Gault has been a director of Avon for the past 14 years. He is former
chairman and CEO of The Goodyear Tire & Rubber Company and Rubbermaid, Inc.
and currently serves on the boards of Wal-Mart Stores, Inc., and The Timken
Company, among others.
Mr. Perrin, who joined Avon as a director in May 1996, became chief
operating officer in January 1998, was named CEO in July 1998 and was elected
chairman of the board in May 1999. He had previously been chairman and CEO of
Duracell International.
Since becoming Avon's top executives last year, Mr. Perrin and Ms. Jung
have initiated a companywide re-engineering program and launched a strategic
plan to accelerate revenue growth and bolster Avon's image among consumers and
sales representatives.
In April, Avon announced a strategic plan that includes expanding
consumer-marketing programs to drive growth in beauty sales, while modernizing
its direct selling system through investments in new technology. More
recently, the company said it intends to spend $100 million next year to fund
its strategies, while targeting earnings growth in the "low to mid teens."
Today, Avon reaffirmed those expectations, as well as its previously stated
outlook for the fourth quarter of 1999.
"The foundation for future growth is in place and Andrea is uniquely
qualified to lead Avon," Mr. Gault said. "She has a thorough knowledge of the
company and the global beauty industry, as well as the passion to mobilize the
organization during this period of significant change. It has been the
Board's intention that Andrea would become Avon's next CEO and given Charlie's
decision to retire, we firmly believe this is the right time for her to lead
the company.
"The Board thanks Charlie for his many contributions, both as a director
and as a senior executive, particularly for his role in helping develop the
company's strategic plan," Mr. Gault said.
Commenting on today's announcement, Ms. Jung said, "We have set a bold new
course for Avon and I am confident that we can build on the wonderful
traditions of the company and make Avon the most relevant beauty brand for
women in the world. I am energized by the potential that I see for this great
company."
Prior to joining Avon, Ms. Jung was executive vice president of Neiman
Marcus, responsible for women's and intimate apparel, accessories and
cosmetics. She also had been senior vice president for I. Magnin, the
prominent chain of specialty stores for women. Ms. Jung is a Director of
General Electric Company and serves on the boards of the Fragrance Foundation,
Cosmetic Executive Women and Princeton University.
She was named one of Fortune's "50 Most Powerful Women in American
Business" in 1998 and 1999, and was inducted into the Advertising Hall of Fame
by the American Advertising Federation.
Mr. Perrin said he plans to devote full time to his Perrin Family
Foundation and other philanthropic activities. He and his wife, Sheila,
established the Foundation in 1994 to fund programs targeted at
underprivileged youth.
"This has been an exciting period for me and I believe the role I've
played in helping guide Avon's future will lead to even greater success for
the company," Mr. Perrin said.
Avon is the world's leading direct seller of beauty and related products,
with $5.2 billion in annual revenues. Avon markets to women in 135 countries
through 2.8 million independent sales representatives. Avon product lines
include such recognizable brands as Anew, Skin-So-Soft, Avon Color, Far Away,
Rare Gold, Millennia, Starring, Avon Skin Care and Women of Earth. Avon also
markets an extensive line of fashion jewelry, apparel, gifts and collectibles.
More information on Avon and its products can be found on the company's award
winning website http://www.avon.com.
SOURCE Avon Products, Inc.
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Related links:
http://www.avon.com
Company News On-Call:
http://www.prnewswire.com/comp/079575.html or fax,
800-758-5804, ext. 079575
CONTACT:
Media - Brian Martin, 212-282-5103, or
Investor - Carol Murray- Negron, 212-282-5320, both of Avon
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