: Tupperware stock craters after company warns its debt burden may force it out of business

by | Nov 2, 2022 | Stock Market

Tupperware Brands Corp. stock tumbled 41% Wednesday, after the maker of food storage products missed third-quarter earnings expectations, warned it may go out of business, and conceded that some of its problems are of its own making. “The global macro environment continues to be challenging, and we are not executing internally at a level or consistency that we believe we should be,” Chief Executive Miguel Fernandez told analysts on the company’s earnings call, according to a FactSet transcript.

Sales slowed in Asia Pacific and North America, and were weak in Europe where the Russia war on Ukraine is playing out, he said. China was a disappointment, thanks to COVID-related lockdowns which continue to hurt sales. Those trends were partially offset by growth in South America, but the strong dollar partially offset that positive and is expected to remain a negative going forward. Tupperware
TUP,
-41.46%
was also hurt by actions it’s taking as part of a turnaround plan, said Fernandez. These included “pricing decisions” to protect margins in North America, and information-technology (IT) upgrades that created service issues that hurt sales. The company raised prices by an average of 11% to combat inflation, he said. “Rest assured that we remain keenly focused to right size our …

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