Natura's stock crashed 30% in a day after margins missed and Avon costs hit

On March 14, 2025, Natura&Co's shares fell 30% in a single trading session after the Brazilian beauty group reported fourth-quarter results far below market expectations. The company lost roughly R$5 billion in market value, and its stock reached the lowest price in a decade.

Revenue had grown 16.1% in constant currency to R$7.7 billion, and the Natura brand was growing 21% in Brazil. But gross margin came in at 63.2% against expectations of about 66%, driven by aggressive promotions, a worse sales mix including lower-margin Christmas kits, and the reclassification of IT spending from capital to operating expenditure. EBITDA of R$703 million was roughly 30% below Bloomberg consensus.

The quarterly net loss was R$463 million, driven mainly by R$843 million in costs tied to Avon Products' Chapter 11 process in the United States. BTG Pactual called the numbers "polluted"; JP Morgan said they "did not come close to what was expected." Avon's Latin American operations remained weak, and management offered no clear timeline for resolving Avon International's future.