Why Tupperware Brands Stock Is Tanking Today: 'We Expect 2023 To Be A Transition Year'

Tupperware Brands Corp TUP shares are tanking Wednesday after the company reported preliminary fourth-quarter results.

What Happened: Tupperware said it expects fourth-quarter net sales to decrease 20% year-over-year to $313.7 million versus estimates of $295.34 million. The company anticipates a fourth-quarter adjusted loss of 24 cents per share versus estimates for positive earnings of 29 cents per share.

"We entered the year optimistic about our progress in improving our business economics and executing on our growth plans.  Events did not unfold in our favor, so we reacted quickly to the challenges," said Miguel Fernandez, president and CEO of Tupperware Brands.

"We raised prices to protect gross margins, worked with our banks to provide more financial flexibility, accelerated our re-engineering efforts as part of our ongoing commitment to right size the business, and developed innovative programs to significantly reduce inventories in the fourth quarter," said Mariela Matute, CFO of Tupperware Brands. 

"While we are pleased with these positive initiatives, we expect 2023 to be a transition year, as we work to stabilize the business and solidify our financial foundation."

Tupperware will host a conference call Wednesday at 8:30 a.m. ET to discuss these results.

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TUP Price Action: Tupperware shares are hitting new 52-week lows on Wednesday.

The stock was down 27.8% at $2.95 at time of publication, according to Benzinga Pro.

Photo: Phillip Pessar from Flickr.