By Sam Boughedda
Tupperware Brands (NYSE:TUP) shares plummeted over 40% Wednesday after the company published third-quarter earnings, significantly missing analyst earnings and revenue estimates.
Tupperware reported earnings per share of $0.14, $0.43 worse than the analyst estimate of $0.57, while revenue for the quarter came in at $302.8 million versus the consensus estimate of $362.7 million. Net sales decreased 20% year-over-year compared to $376.9 million in the prior year period.
The company said it faced several headwinds during the quarter, with top-line trends in Asia Pacific and North America decelerating and continuing to decline in Europe due to ongoing geopolitical tensions and the difficult macroeconomic environment.
However, it stated that it is continuing to implement its turnaround plan, which includes "fixing the core, right sizing the business, divesting non-core assets and opening new channels of distribution." As a result of the challenges it is facing, Tupperware said it expects to take additional restructuring actions in the fourth quarter, as well as "implementing stringent inventory reduction programs."
"While we are excited to expand the Tupperware ecosystem to have some of our products available at a major US retailer early in the fourth quarter, we faced internal and external challenges in the third quarter that eroded our business economics," said Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands. "Additionally, currency headwinds were more than expected given the continued strengthening of the dollar against most major currencies."