- Tupperware Brands Corp (NYSE:TUP) reported a first-quarter FY22 sales decline of 16% year-on-year to $348.1 million, missing the consensus of $356.8 million.
- Net sales were down in all segments, with the decrease primarily driven by lower recruiting and overall sales force activity, due to the Russia/Ukraine conflict and lockdowns caused by the Omicron variant of COVID-19, particularly in China, as well as product mix and service issues.
- Sales in North America fell 13% Y/Y to $101.8 million, South America declined 1% to $57.7 million, Europe decreased 25% to $90.9 million, and Asia sales dropped 16% to $97.7 million.
- The gross profit fell 24.4% to $222 million, and the gross margin contracted by 720 basis points to 63.8%.
- The operating margin was 5%, and operating income for the quarter decreased 77.2% to $17.5 million.
- The company held $245.6 million in cash and equivalents as of March 26, 2022.
- Adjusted EBITDA was $28.7 million versus $84.8 million last year.
- Adjusted EPS of $0.12 missed the analyst consensus of $0.52.
- The company has appointed Mariela Matute to the position of Chief Financial Officer, effective May 24, 2022.
- "Sales were negatively impacted by the Russia/Ukraine conflict, as well as strict COVID-related lockdowns in China and internal challenges in execution, technology, and service. Profitability was significantly impacted by persisting inflationary pressures and the latency between rising input costs and our decision to increase prices," said CEO Miguel Fernandez.
- Price Action: TUP shares are trading lower by 33.9% at $11.83 on the last check Wednesday.
- Photo Via Wikimedia Commons
