Tupperware Sales Fall on Strong Dollar

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 [e-mail]

(END) Dow Jones Newswires

January 27, 2016 08:15 ET (13:15 GMT)

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