Tupperware Brands Corp. posted a soft current-quarter outlook Tuesday, as first-quarter sales fell 12%, primarily because of the strong dollar.
Still, revenue results beat Wall Street expectations.
For the second quarter, Tupperware said it expected to report $1.14 to $1.19 a share in profit, below analysts’ expectations of $1.23 a share. It also expects sales to be down 11% to 13%. Analysts had expected an 11% drop.
The company’s results continued to rely heavily on sales in emerging markets. For a while, Tupperware had enjoyed double-digit sales growth in those markets, although recently they had slowed to a high single-digit rate.
Chief Executive Rick Goings highlighted developing markets like Argentina, Brazil and China, which contributed to sales growth despite overall “challenged markets.”
In the most recent period, emerging markets accounted for 66% of Tupperware’s top line, with sales growing 8% in
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Tupperware Reports A 12% Loss During First Quarter
by Tina Williams • • 0 Comments
Tupperware Brands Corp. posted a soft current-quarter outlook Tuesday, as first-quarter sales fell 12%, primarily because of the strong dollar.
Still, revenue results beat Wall Street expectations.
For the second quarter, Tupperware said it expected to report $1.14 to $1.19 a share in profit, below analysts’ expectations of $1.23 a share. It also expects sales to be down 11% to 13%. Analysts had expected an 11% drop.
The company’s results continued to rely heavily on sales in emerging markets. For a while, Tupperware had enjoyed double-digit sales growth in those markets, although recently they had slowed to a high single-digit rate.
Chief Executive Rick Goings highlighted developing markets like Argentina, Brazil and China, which contributed to sales growth despite overall “challenged markets.”
In the most recent period, emerging markets accounted for 66% of Tupperware’s top line, with sales growing 8% in
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Kleeneze Loses Nearly A Quarter Of Sales After A Period Of Poor Service Levels
by Tina Williams • • 0 Comments
Half-year results from Findel (FDL) told a tale of two parts. The Kleeneze marketing business lost nearly a quarter of sales as it struggled to win back customers following a period of poor service levels.
Luckily, a flexible cost base stemmed the bottom-line damage: divisional operating profit fell by just £1m, giving a £0.4m loss. Still, the dire result forced management to take a £19m impairment charge on the business, which explains the dramatic fall in reported earnings.
Excluding this charge, the group made a pre-tax profit of £1.5m, compared with losses the year before. Much of that was thanks to Express Gifts. This personalised shopping service enjoyed a 6 per cent increase in sales, boosting profits by almost a half to £4.8m, as efforts to improve the pricing and product range and trim costs paid off. Bad debt levels from credit customers also improved dramatically.
Elsewhere, tighter school budgets trimmed profits in the educational supplies division, but sports-merchandise retailer Kitbag enjoyed decent top-line growth and almost halved its losses to £1.5m. Importantly, Findel is exploring a sale, and several parties have expressed interest. Any proceeds would be used to cut debt, which fell by £15.8m to £116m, net of cash.
Oriel Securities expects adjusted