Skip to main content
Publish date:

Tupperware Stock Climbs on Progress With Turnaround

Tupperware shares jumped after the producer of food-storage containers reported second-quarter progress with a turnaround plan.
Author:

Tupperware  (TUP) - Get Tupperware Brands Corporation Report shares jumped after the prominent producer of food-storage containers reported second-quarter progress with a turnaround plan. 

The Orlando, Fla., company earned 67 cents a share in the quarter against $1.30 in the year-earlier period. The latest adjusted profit was 95 cents a share.

Revenue of $464.7 million rose 17% from $397.4 million a year earlier. 

The turnaround plan resulted in sales growth coupled with profit that "continues to reflect our right-sizing efforts," Tupperware Chief Financial Officer Sandra Harris said in a statement. She said the company also is reducing its debt.

The double-digit sales growth reflects investments and initiatives to grow Tupperware's core direct-selling business for the long term, Chief Executive Miguel Fernandez said.

TheStreet Recommends

Piecing Together a Portfolio of Lovable Losers: Real Money

Tupperware shares at last check rose 6% to $22.51. The stock in mid-January touched a 52-week high $38.59.

Net sales in North America and Europe both jumped 26%, to $155.8 million and $114.4 million, respectively. Asia-Pacific net sales declined 7% to $124.6 million. 

Earnings fell largely because the year-earlier period reflected gains from eliminating debt and selling property. 

In June, the company authorized a stock buyback of as much as $250 million and prepaid $58 million of term-loan debt held by investment manager Angelo Gordon and banking giant JPMorgan Chase.

The company's turnaround plan had improved its liquidity position over the past 18 months, enabling it to prepay $58 million of the term loan, Harris said.