Shares of Tupperware Brands (TUP) - Get Report spiked on Wednesday after the food-storage-equipment company reported progress with its turnaround, including a 60% jump in second-quarter share earnings.
Tupperware shares at last check were 35% higher at $13.02.
The Orlando, Fla., company reported net income of $63.8 million, or $1.30 a share, up from $39.4 million, or 81 cents, in the year-earlier quarter. Revenue fell 16% to $397.4 million from $475.3 million.
"In the second quarter we pivoted to a new way to lead the business, a new way to operate the company and embraced a new growth strategy," Chief Executive Miguel Fernandez said in a statement.
"Our performance reflects progress made to right-size our cost structure and improve liquidity."
Tupperware is increasing its efforts to "contemporize Tupperware" and to leverage the consumer influence" of its brand, he said.
The sales force is using "digital tools and techniques to bring Tupperware's relevant products to market during unprecedented times," the company said.
In May, Moody's downgraded Tupperware's credit rating to Caa3 from B3 and its probability of default rating to Caa3-PD from B3-PD.
"Tupperware's significant earnings erosion in 2020, the difficulty of executing a meaningful turnaround in the current recessionary economic environment and high leverage ... create elevated default risk," the credit-rating company said then.
In the current statement, Chief Financial Officer Sandra Harris said that while the company's 4.75% 2021 senior notes became current in June, it retired about $100 million of the notes at a discount to par.
"Additionally, we continue to work with our advisors to explore opportunities to repurchase, refinance or extend the maturity on our debt," she said.
Tupperware's "improved profitability and revenue growth through the turnaround plan, together with the anticipated sale of our Orlando real estate and other non-core assets, will contribute to our ability to meet our future debt obligations."
As of June 27, the company continued to be in compliance with its financial covenants under its credit agreement, Tupperware said.