Andrea Jung Will Bid Farewell To Avon By The End Of 2012

Andrea Jung, executive chairman officer at Avon Products Inc., will reportedly step down from her position by the end of 2012, Bloomberg reports. Jung as been with the company for over 13 years and has weathered several business-related storms during her tenure. Given her reputation as of late, some analysts feel her departure is a step in the right direction.

Wedbush Securities’ Rommel Dionisio believes Andrea Jung’s absence from Avon could ultimately bode well for the company’s stocks. “Given the sour taste that the last several quarters of her tenure left in some people’s mouths, I’d view this as a positive for the stock overall,” he explained to Bloomberg.

Andrea Jung’s stint as CEO for Avon began in 1999. During her time with the company, the CEO battled a number of high-profile problems, including an attempted takeover and an overseas probe into possible bribery. Jung will vacate her spot as of January 1, 2013, though she will reportedly serve as a senior adviser for the company.

According to the New York Times, Jung released a statement regarding her departure from Avon. “It has been a great privilege to serve the company over the past two decades, most notably the millions of Avon representatives and thousands of associates around the world,” Jung said, explaining that her decision to leave “reflects the successful transition to new leadership.”

Erin Lash, an analyst for Morningstar, seems positive that Jung’s departure will help the company turn itself around. “It’s just one more way that the new management group is trying to close the book on the most recent troubled chapter the company has been living through in the last couple of years,” Lash explained.

Andrea Jung essentially reinvigorated the brand after coming aboard in 1999 as well as helped the company reach new overseas markets. However, the CEO’s name began to tarnish when sales started to drop in 2005. According to the New York Post, the company’s profits have dropped every year since 2008.

Do you think Andrea Jung’s departure from Avon is a step in the right direction for the cosmetics company?