Tupperware boosts earnings, but points to challenging 2017

Tupperware stock fell 5 percent in early trading after the house wares maker lowered expectations for the beginning of 2017.

The dismal forecast came as Orlando-based Tupperware Brands Corp. (NYSE: TUP) turned in fourth quarter and year-end earnings Wednesday. CEO Rick Goings said Tupper struggled in the fourth quarter with economic and political instability int foreign markets, but still improved sales during the quarter, partially helped by an extra week in its fiscal reporting period.

Tupperware sales were up 1.4 percent compared to the fourth quarter of 2015, bringing in $600.9 million.

The direct seller of plastic storage and beauty products depends heavily on emerging markets such as those in Asia, Mexico and South America.

Lower delivery, sales and administrative expenses helped boost net income to $79 million in the quarter, up from $58.1 million a year ago. Earnings per share were $1.45, about 8 cents better than Wall Street estimates.

But Tupperware executives lowered expectations for the first year, expecting sales growth of just 0 to 2 percent. They said sales are expected to drop in Europe and Asia. Asia has been one of its biggest growth markets in recent years.

For 2016, Tupperware sales slipped as sales dropped 3 percent, even with that extra week. Net income increased to $223.6 million from $185.8 million.

"We experienced a challenging fourth quarter to cap off an already tough 2016,” said Goings in a statement. “Despite the impact of further economic and political instabilities, our businesses in emerging markets continued on a growth trajectory in the fourth quarter with outstanding results in Argentina, Brazil, China and Tupperware South Africa."

Analyst Neil Saunders, managing director of GlobalData Retail, said Tupperware didn’t live up to expectations, especially in Asia, Europe and Mexico.

“Looking ahead, we expect steady, but not spectacular, progress in 2017,” he said in a statement.

However, Saunders said he was impressed the 68-year-old company improved sales in North America.

“Most encouraging are the United States and Canada, where sales rose by 8 percent,” he said. “Although this result is enhanced by the additional week of trade, it still represents progress in markets that are both mature and saturated.”

Got a news tip? karnold@orlandosentinel.com or 407-420-5664; Twitter, @kylelarnold or facebook.com/bykylearnold

Microsoft co-founder Paul Allen will turn the Redbury Hotel in Hollywood into a club for entrepreneurs. (Jan. 31, 2017)

Microsoft co-founder Paul Allen will turn Supertotobet the Redbury Hotel in Hollywood into a club for entrepreneurs. (Jan. 31, 2017)

Microsoft co-founder Paul Allen will turn the Redbury Hotel in Hollywood into a club for entrepreneurs. (Jan. 31, 2017)

Uber faced criticism for sending drivers to the airport and suspending surge pricing, while Lyft co-founders announced they would donate $1 million to the American Civil Liberties Union. (Jan. 30, 2017)

After finally breaking a record and clearing 20,000 points, the market and local companies took a hit following Donal Trump’s immigration ban.

Americans who were misled by two mortgage servicers while trying to save their homes from foreclosure will be compensated. (Jan. 25, 2017)

Wi-fi connectivity has become an expectation for any large event. The global market for optical transceivers, which serve as the access points needed to keep wi-fi users logged into large locations’ networks, grew to $4.6 billion in 2015, up more than 40 percent from $3.2 billion two years earlier.

Our editors found this article on this site using Google and regenerated it for our readers.