Tupperware Brands got trounced last week on disappointing second-quarter sales and the company's reduction in its full-year earnings per share expectation to $5.40-$5.50, down from $5.66-$5.81. The company reported $1.47 cents of earnings per share for the second quarter, in line with expectations. Sales for the quarter came in at $674 million, less than expected sales of $687 million. As a result, shares of the stock fell sharply, down 11% on the news.
Tupperware is a global, direct-selling, consumer products company offering storage and serving solutions for the kitchen and home as well a line of personal care products. It operates in almost 100 countries and utilizes an independent sales force of 2.9 million representatives. Emerging markets account for two-thirds of the company's sales.
CEO Rick Goings blamed the lackluster sales on unrest in Ukraine and Russia as well as an unusually high number of long holiday weekends in Germany causing people to go away rather than host or attend Tupperware parties. A large part of the 3% reduction in earnings expectations is due to Venezuelan price controls and currency devaluation.
Whatever the reason, Tupperware is still a solid company and is currently priced to buy. You get a great product line that competes against other consumer product companies both through direct sales -- the famous Tupperware "party" -- and on the Internet.