Shares of Avon Products (AVP) are plunging after the company reported fourth quarter results that fell well below analysts' estimates. Avon manufactures and markets beauty products such as fragrances and cosmetics, and also offers jewelry and accessories.

What's new: Avon this morning said its adjusted continuing operations earnings per share were breakeven, compared with 21c in the year-ago period and analysts' consensus estimate of 8c. Including items, Avon's loss from continuing operations for Q4 was 70c per share. Revenue for the quarter came in at $1.6B, below analysts' estimate of $1.82B. Total revenue was down 20%, but up 3% in constant dollars excluding the divestiture of Liz Earle. Excluding Liz Earle and certain Brazil items, the company said constant dollar revenue would have been up about 6%. Avon said active representatives were up 2% year over year, but that average order was down 1% and was negatively impacted due to the Brazil value added tax credits that did not recur in 2015, as well as the Brazil Industrial Production Tax in 2015 and the Liz Earle divestiture. Avon also said Q4 beauty sales fell 21%, but were up 2% in constant dollars.

Commentary: Looking ahead to 2016, Avon said on its earnings conference call that it expects 1%-2% active representative growth for the company. Avon also expects Brazil to be a "challenging" environment, but said it believes Brazil will be "relatively flat with ups and downs" over the course of the year. Further, Avon expects Mexico to deliver "solid" performance, the U.K. will deliver flat to slightly positive growth by year-end and that Russia will continue to grow. The company also expects to have a resolution for its China business during 2016. Avon said a specific challenge in China has been its business model and noted that it is looking at strategic partnerships. Avon said it expects to take "significant" price increases moving forward. Lastly, Avon said it will execute more cost take out in 2016 of $70M.

Investor day and headcount reduction: Avon held its investor day in January and said it expects to cut $350M in costs over the next three years. At the time, CEO Sheri McCoy said the company would look at "all alternatives" for its China division, which represents about 1% of total sales. Following Avon's investor day, Piper Jaffray analyst Stephanie Wissink upgraded Avon Products to Overweight from Neutral and said the company offered a viable strategy to modernize the company. Earlier in the month, Avon disclosed in a regulatory filing that it would cut headcount related to an information technology infrastructure outsourcing initiative. Avon said it would record total charges of about $30M before taxes.

Price action: Avon Products is down 15% to $2.75 in morning trading. Shares are down more than 65% over the last 12 months.