In March, many market participants had already written off Tupperware (NYSE:TUP) and saw nothing but a troubled company. Bookkeeping problems, profit warning, corona crisis and bankruptcy worries caused the stock to drop temporarily to $ 1.25. But now everything seems to be forgotten. The manufacturer of food storage boxes and kitchen utensils pulverized the market expectations with the figures for the second quarter. The share temporarily rises by 70 percent.
Quite surprisingly, Tupperware published a profit increase over the previous year. The company earned $ 63.8 million, or $ 1.30 per share. Last year it was $ 39.4 million, or 81 cents per share.
Adjusted for special items, earnings were $ 41.5 million, or 84 cents per share. The analysts had expected 14 cents, according to Thompson Reuters. Quarterly sales declined 16.4 percent from $ 475.3 million a year earlier to $ 397.4 million, meeting analysts’ estimates.
“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. Our performance reflects progress made to right size our cost structure and improve liquidity. We are now increasing our efforts to contemporize Tupperware and become a global leader in sustainable consumer solutions while leveraging the consumer influence of our iconic brand,” said Miguel Fernandez, President and CEO of Tupperware Brands.