Avon Products, Inc. announced that its board of directors authorized the repurchase of $2 billion of the company's common stock over a five-year period following completion of its current program. Through September 30, 2007, Avon purchased 26 million shares at a total cost of $904 million under the existing program begun in late 2005. Avon has had a share repurchase program since 1994.
Under the new authorization, Avon's annual share purchase volume will depend on the company's operating performance. Repurchases may take place from time to time, depending on market conditions, and the shares may be purchased in open-market or privately negotiated transactions. As of September 30, 2007, the company had approximately 429 million shares outstanding.
"We're very pleased to commit to this new, larger stock repurchase program," said Andrea Jung, chairman and CEO, Avon. "Today's announcement is indicative of the long-term health of our business and our ongoing commitment to enhance shareholders' return on their investment in Avon."