Tupperware stocks take off, despite falling sales

Tupperware sales fell 10 percent in the third quarter from a year ago, but investors flocked to the Kissimmee-based company Wednesday after it beat analysts’ expectations for earnings.

Tupperware Brands (NYSE: TUP) sales dropped 10 percent in U.S. dollars to $485.8 million and 2 percent in local currencies between July and September.

Still, on Wall Street the stock closed up 14.6 percent at $37.09.

Net income, however, was up $7.7 million to $39.1 million, or 91 cents a share. That was above the 82 cents per share analysts expected, according to Yahoo Finance.

Much of the sales drop came from the continued impact of closing units such as Beauticontrol and Japanese divisions of NaturCare and Tupperware.

The company did grow in emerging markets such as China, Mexico and South Africa. But sales in North America as a whole were down 11 percent.

Emerging markets, which make up 62 percent of sales, saw a 2 percent increase in sales in local currency.

“During the quarter we saw great progress in many of our initiatives to position Tupperware with more engagement, more access and more relevance,” said a statement from CEO Tricia Stitzel. “While we are certainly better positioned today, we are continuing to work with a strong sense of urgency to make the necessary changes across our global operations to generate profitable revenue growth.”

Tupperware has been working to redefine the company in recent years.

Its active sales force is down 10 percent from the same time a year ago and stands at 549,148 people.

The maker of home goods and beauty products expects continud slowing sales in the coming months. It said sales would likely be down 7 to 9 percent in the fourth quarter of 2018 compared to the fourth quarter of 2017.

Tupperware also said that it repurchased $50 million worth of its own shares during the quarter, a move to help support the stock price.