Tupperware Lowers Guidance as Strong Dollar Hurts Results

Tupperware Brands Corp. edged down its guidance for the year as profit fell in the latest quarter, hurt by continued pressure from a strong dollar.

For the current quarter, the maker of plastic food containers expects adjusted per-share earnings of 77 cents to 82 cents. Analysts polled by Thomson Reuters expect 82 cents a share.

Tupperware lowered its 2016 adjusted earnings guidance to $4.25 to $4.35 a share. In April, the company had boosted its forecast to $4.28 to $4.38 of adjusted per-share earnings, up from a range of $3.81 to $3.91.

Chief Executive Rick Goings said exchange rates hurt the company's sales growth during the second quarter.

Tupperware, which does more than 70% of its business overseas, said sales were down 4.1% in dollars, but up 3% in local currency "with significant contributions from Brazil, China, Malaysia/Singapore and Tupperware Mexico." Mr. Goings said the company is adding digital tools—seen now in China—to strengthen social selling.

Tupperware said Egypt and Turkey pulled sales in its Europe segment down 13% in dollars and 9% in local currency. Sales in the Asia Pacific segment rose 1% in dollars and 5% in local currency. Sales in South America rose 8% in the dollar and 32% in local currency, boosted by a 22% gain in dollars in Brazil. Sales for Tupperware North America fell 1% in dollars, but rose 6% in local currency helped by a 13% rise in Mexico in local currency.

For the quarter ended June 25, Tupperware reported a profit of $52.4 million, or $1.03 a share, down from $62 million or $1.23 a share from a year earlier. Adjusted to exclude certain items and the impact from foreign exchange, earnings were $1.16 a share, down from $1.89 a year ago.

Sales for the quarter fell to $564.7 million from $588.9 million a year ago.

In April, Tupperware had given guidance of $1.07 to $1.12 in adjusted per-share earnings and $559.5 million to $571.2 million in revenue.

Tupperware's stock has fallen 1.4% over the past three months. Shares fell 0.8% in premarket trading to $57.62.

(END) Dow Jones Newswires

July 20, 2016 09:55 ET (13:55 GMT)

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