Tupperware Brands Registers 12% Sales Decline In Q4

Tupperware Brands Corp TUP reported a fourth-quarter FY21 sales decline of 12% year-on-year, to $394.9 million, beating the consensus of $384.97 million.
Sales in North America fell 12% Y/Y to $108.3 million, South America decreased 16% to $62.4 million, Europe declined 11% to $106.5 million, and Asia Pacific sales dropped 11% to $117.7 million.
The company noted the impact of the omicron variant on its financial results was significant, with partial or country-wide lockdowns in various markets affecting operations.
Adjusted EPS of $0.38 included a one-time tax item of $(0.11) per share.
The gross profit fell 21.2% to $240.9 million, and the gross margin contracted by 720 basis points to 61%.
The operating margin was 11.2%, and operating income for the quarter declined 56% to $44.4 million.
The company held $267.2 million in cash and equivalents as of December 25, 2021. Net cash provided by operating activities for the twelve months amounted to $111.4 million.
Tupperware Brands said it is currently exploring the sale of its Nutrimetics and Nuvo businesses.
Outlook: Tupperware Brands expects FY22 adjusted EPS of $2.60 - $3.20 versus the consensus of $3.13.
Price Action: TUP shares are trading higher by 1.97% at $16.83 on the last check Wednesday.