Tupperware Brands Corp. shares jumped as much as 7.5 percent after the maker of plastic containers said sales were improving in overseas markets.
Sales are tracking near the high end of its forecast for the third quarter, based on local currencies, the Orlando, Florida-based company said in a statement Wednesday. Its performance is rebounding in Indonesia, France and Italy, and growth in Argentina, Brazil, China, Mexico and South Africa remains strong despite economic challenges, Tupperware said.
“While we, like many other global consumer products companies are navigating through a volatile external environment, particularly in the emerging markets, we are pleased that two months into the quarter we are tracking toward the high end of our local currency sales outlook range,” Chief Executive Officer Rick Goings said in the statement.
The stock climbed as high as $52.74 in New York, the biggest intraday gain since Jan. 28. Tupperware shares had been down 22 percent this year before the rally.
Rick Goings, Chairman and CEO commented, While we, like many other global consumer products companies are navigating through a volatile external environment, particularly in the emerging markets+++, we are pleased that two months into the quarter we are tracking towards the high-end of our local currency sales outlook range for the third quarter as announced in July.
We have seen the expected trend improvement in Indonesia, France and Italy, and strong growth in our businesses in Argentina, Brazil, China and Tupperware Mexico and South Africa in spite of the macros, which reflects the strength of our business model and skill of our local leadership.
Based on actual foreign exchange rates for July and August rates thereafter, the third quarter impact of changes in foreign exchange rates on the Company's 2015 earnings per share comparison with 2014 would be negative 26 centsper share. There was a negative 22 cent impact included in the guidance provided in July in the Company's second quarter 2015 earnings release.
The Company plans to release its third quarter 2015 earnings results on Tuesday, October 20, 2015.
+ Local currency changes are measured by comparing current year results with those of the prior year translated at the current year's foreign exchange rates.
++ See the September 1, 2015 foreign exchange impact update posted on the Company's website, https://ir.tupperwarebrands.com/financial-information/foreign-exchange-impact/default.aspx, which indicates an impact on the third quarter 2015 versus 2014 sales comparison of negative 18% versus negative 16% in the Company's second quarter earnings release in July 2015.
+++ The Company classifies Established Market Units as those operating in Western Europe, including Scandinavia, the United States, Canada, Australia and Japan and its remaining units as Emerging Market Units.
Tupperware Brands Corporation is the leading global marketer of innovative, premium products across multiple brands utilizing a relationship based selling method through an independent sales force of 3.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products through the Avroy Shlain, BeautiControl, Fuller Cosmetics, NaturCare, Nutrimetics, and Nuvo brands.
The Company's stock is listed on the New York Stock Exchange (NYSE: TUP). Statements contained in this release, which are not historical fact and use predictive words such as outlook, guidance, expects or target are forward-looking statements. These statements involve risks and uncertainties that include recruiting and activity of the Company's independent sales forces, the success of new product introductions and promotional programs, governmental approvals of materials for use in food containers and beauty and personal care products, the success of buyers in obtaining financing or attracting tenants for commercial and residential developments, the effects of economic and political conditions generally and foreign exchange risk in particular and other risks detailed in the Company's periodic reports as filed in accordance with the Securities Exchange Act of 1934.
The Company updates each month the impact of changes in foreign exchange rates versus the prior year, posting it on the Tupperware Brands website, https://ir.tupperwarebrands.com/financial-information/foreign-exchange-impact/default.aspx,. Other than updating for changes in foreign currency exchange rates, the Company does not intend to update forward-looking information, except through its quarterly earnings releases, unless it expects diluted earnings per share for the current quarter, excluding items impacting comparability and changes versus its guidance of the impact of changes in foreign exchange rates, to be significantly below its previous guidance.
Get more information, facts and figures about Tupperware, click here for the Tupperware overview.