Tupperware Brands Q1 Sales Up 6% To $554.8 Million

Tupperware, CEO, Rick Goings


Tupperware Brands Corporation recently announced first quarter 2017 operating results.

Rick Goings, Chairman and CEO, commented, Local currency sales grew 6% in the first quarter, beating the high-end of our sales guidance by 3 points, driven by 9% growth in our emerging market businesses, most significantly in Brazil, China, Tupperware Mexico and Tupperware South Africa.

Adjusted earnings per share was 7 cents above the high-end of our range, including a 2 cent benefit from foreign exchange rates versus our February guidance.

Goings continued, Solid execution of direct selling fundamentals, along with innovative digital strategies across the portfolio, allowed more of our businesses to leverage our strong aspirational brand and provide an earnings opportunity that builds confidence in the 3.2 million women of our global sales force.

With double digit sales force size advantages and the wind at our backs in several key businesses, we expect the momentum to continue in 2017, and have raised our sales and earnings per share outlooks accordingly.

First Quarter Executive Summary

  • First quarter 2017 net sales were $554.8 million, up 6% in dollars and local currency. Emerging markets**, accounting for 66% of sales, achieved a 9% increase in dollars and local currency. The most significant contributions to the first quarter growth in local currency were in Brazil, China, Tupperware Mexico and Tupperware South Africa, partially offset by Indonesia. Established markets were down 1% in dollars and local currency, most significantly in France, net of a significant increase by Tupperware United States and Canada. There was an estimated 1 percentage point benefit on the year-over-year sales comparison of the whole Company from net favorable time shifts.
  • GAAP net income and diluted earnings per share were $47.4 million and $0.93, versus $43.4 million and $0.86 in the prior year, respectively. Adjusted, diluted earnings per share of $1.01 was 7 cents above the high-end of the February guidance range, reflecting higher than expected sales, particularly in China which had a good contribution margin to profit, lower costs from restructuring actions taken to improve the value chain in Beauticontrol, and a timing benefit from unallocated corporate costs. Versus the February guidance, there was a 2 cent benefit from stronger foreign exchange rates on the diluted earnings per share comparison, while there was no impact versus 2016.
  • Total sales force of 3.2 million was up 5% versus the prior year, a 4-point sequential improvement from the end of 2016, and average active sellers were down 1%, a 7-point improvement from the fourth quarter.

First Quarter Business Highlights

Europe: Segment sales were down 3% in dollars and 2% in local currency.

  • Emerging markets in Europe were up 4% in dollars and 1% in local currency, mainly from a significant increase in Tupperware South Africa, up 60% in dollars (35% in local currency), partially offset by Turkey, down 37% in dollars (21% in local currency).
  • Established markets were down 6% in dollars and 4% in local currency, primarily in France, which was down 18% in dollars (16% in local currency).

Asia Pacific: China leads the way with significant double-digit increase. Segment sales up 3% in dollars and 4% in local currency.

  • Emerging Markets in Asia Pacific were up 4% in dollars and 6% in local currency, led by 39% more members and continued leveraging of the product portfolio and digital technologies in China, up 31% in dollars (38% in local currency), along with solid performances in Malaysia/Singapore and Philippines, each up 1% in dollars and 7% in local currency. These were partially offset by Indonesia, down 9% in dollars (10% in local currency).
  • Segment's total sales force was 1% higher year-over-year, net of a negative 8 percentage point impact due to implementing requirements under government direct selling guidelines in India.

Tupperware North America: Both Mexico and United States and Canada leveraged strong fundamentals, growing segment sales up 10% in dollars and up 14% in local currency.

  • Tupperware United States and Canada sales were up 15% in dollars (14% in local currency).
  • Tupperware Mexico sales were up 4% in dollars (15% in local currency), which was a double-digit sequential improvement in local currency versus the fourth quarter of 2016 that was impacted by challenging externals following the U.S. presidential election and a more difficult comparison.

Beauty North America: Segment sales down 19% in dollars and 13% in local currency.

  • Beauticontrol sales down 23%, mainly in connection with a smaller sales force.
  • Fuller Mexico sales were down 18% in dollars and 9% in local currency, reflecting a smaller sales force size, although at down 3% in total sellers, there was a sequential improvement from the fourth quarter of 2016.

South America: Brazil continues to drive segment sales growth of 42% in dollars and 27% in local currency.

  • Brazil was up 52% in dollars and 24% in local currency, reflecting higher volume from a 23% advantage in total sellers in connection with strong sales force additions and onboarding, as well as effective merchandising and marketing campaigns.
  • Sales in Argentina were up 23% in dollars and 33% in local currency in connection with price increases related to the high inflation environment.
  • Segment's sales force size was up 17%, and it had 12% more active sellers.
  • Full Year 2017

  • Fiscal year 2017 includes 52 weeks, while 2016 had 53 weeks. The Company estimates this will have a negative 1 percentage point impact on the year-over-year sales comparison in 2017 versus 2016.
  • Tax rate estimated at 26.1% on a U.S. GAAP basis and 25.5% excluding items.
  • Excludes land sales that may occur.
  • Segment Level

  • For the full year, sales are expected to be down low-single digits in dollars (down 1 to 3% in local currency) in Europe, about even in dollars and in local currency in Asia Pacific, up high single digits in dollars (up 8 to 10% in local currency) in Tupperware North America, down low double digits in dollars (down 10 to 11% in local currency) in Beauty North America and to increase in South America by mid to high twenties in dollars (18 to 20% in local currency).
  • Segment profit return on sales, excluding items, is expected to be about even in dollars and decrease about ½ point in local currency in Europe, to increase slightly in dollars and local currency in Asia Pacific, to increase about ½ point in dollars and local currency in Tupperware North America, to increase about 1 point in dollars and local currency in Beauty North America, and to be about even in dollars and local currency in South America.

About Tupperware Brands Corporation

Through an independent sales force of 3.2 million, is the leading global marketer of innovative, premium products across multiple brands utilizing social selling. 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.

Get more information, facts and figures about Tupperware, click here for the Tupperware overview.

Become a Recommended Distributor

Direct Selling Distributors, they are active professionals, who love to team up with you!

Write a comment

Connect with