Tupperware Brands Corp (NYSE: TUP) opened 30% down in the stock market on Wednesday after the food storage company reported weak results for its fiscal Q1 and withdrew guidance for the future.
Tupperware Q1 financial highlights
Lost $100,000 versus the year-ago figure of $45.3 million in net income.12 cents of adjusted EPS was well below the experts’ forecast of 52 cents.A 16% decline in sales to $348.1 million also missed Street expectations.The board authorized up to $250 million worth stock repurchase for Q2.$222 million in Q1 gross profit was 63.8% of quarterly net sales.
Consolidated net leverage ratio stood at 2.88, as per the earnings press release. The stock has lost roughly 60% over the past twelve months.
CEO Miguel Fernandez’ remarks
CEO Miguel Fernandez cited excessive operational uncertainty related to the Ukraine war, lockdowns in China, inflationary pressures, and “internal challenges in execution, technology and service” for withdrawing fiscal 2022 guidance. In the earnings press release, he said:
While we acknowledge the near-term delay in our Turnaround Plan timeline, we believe our business will become stronger as a result of the structural changes we’re making. We remain confident in our ability to execute on our Turnaround Plan and growth strategy, with the end goal being to make this company as big as our iconic Tupperware brand.
In related news, Tupperware said Mariela Matute will serve as its new CFO, effective May 24th.
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