Dive Brief:

• The rise of Avon’s stocks petered out Friday amid skepticism from analysts that the retailer can turn itself around, Reuters reports. Shares fell 5% Friday after the comments from analysts, but were still trading above its Wednesday price of $2.22.

• Optimistic talk Thursday from executives of beauty retailer Avon Products Inc. and Cerberus Capital Management lifted shares as much as 15% Thursday upon the news that Cerberus Capital, which is now Avon's top investor since taking a 17% stake in December, told shareholders that Avon was undervalued and that it isn’t concerned about liquidity.

• But analysts say they want more details about any turn-around plan, saying that the talk Thursday was “age-old” and that the company’s reluctance to reveal cash flow is worrying.

Dive Insight:

Avon’s longterm approach to cosmetic sales, direct sales from “Avon ladies” who were often customers’ friends and neighbors, could be outdated, according to analysts cited by Reuters—or perfectly positioned to evolve to today’s web-dominated market.

The problem is that Avon itself hasn’t pivoted it to today’s many marketing and sales channels, or taken advantage of that sense of personal connection through its social media campaigns. 

In any case, analysts clearly want more than Cerberus’s vote of confidence. The company plans to seek other "alternatives" to its China business, according to Reuters, which didn't seem to please analysts as well.

"These opportunities are not new, and Avon offered little detail to instill confidence that things will be different this time," Reuters says Wells Fargo Securities analyst Chris Ferrera wrote of the meeting.