Tupperware Sales Fall on Strong Dollar
28 January 2016 - 12:30AM
Dow Jones News
Tupperware Brands Corp. gave downbeat guidance after posting a
worse-than-expected drop in sales in the latest quarter as the
stronger dollar continues to dent results for the maker of plastic
food ware with a heavy overseas presence.
For the current quarter, the company forecast earnings between
74 cents and 79 cents a share, sharply below analyst estimates for
earnings of $1.02 a share. Sales are expected to decrease 10% to
12%—more than analyst estimates for a 4% decline.
For the year, earnings are expected between $3.81 and $3.91 s
share, compared with analyst estimates for $4.53 a share. The
company expects revenue to decline 4% to 6%, compared with analyst
estimates for a 1% decrease.
"We had a disappointing quarter as we lapped a tough comparison
and continued to see an impact from economic and political
headwinds in many of our units," Chief Executive Rick Goings said
in a news release. "While I don't want to take away from the strong
performances in a number of units, our internal actions did not
overcome the impact of worse-than-expected externals in some of our
units."
Mr. Goings said the company is making "some defensive moves to
allow us to perform financially and to play better offense in
implementing our growth strategies."
Sales in South America fell 17% when measured by the U.S. dollar
but rose 22% in local currency. Sales in the Asia Pacific segment
fell 13% in dollars and 3% in local currency, as a double-digit
increase in China was offset by declines in Korea, Malaysia,
Singapore and Indonesia, its largest market.
Tupperware gets more than 70% of its sales from outside the U.S.
The top line for the Tupperware North America division, meanwhile,
rose 16% in local currency and 6% in dollars as divisions in
Mexico, the U.S. and Canada all saw double-digit increases in local
currency.
Overall, the company posted a profit of $58.1 million, or $1.15
a share, up from $82.3 million, or $1.63 a share, a year earlier.
Excluding the impact of foreign currency rates, earnings on an
adjusted, per share basis were $1.35 a share.
Revenue slipped 13% to $592.1 million.
In October, the company had given guidance for adjusted earnings
between $1.37 and $1.42 a share on revenue between $611.9 million
and $625.5 million.
The company reported a total sales force of 3.1 million at the
end of the quarter, up 5% from a year earlier, with 2% more active
sellers in the quarter.
Shares of the company, which have fallen 12% over the past three
months, were inactive premarket at $51.48.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 27, 2016 08:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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