TUP stock was up in pre-market trading on July 29, 2020, after the company reported earnings and revenue beats.
Tupperware Brands Corporation today reported operating results for the second quarter ended June 27, 2020. Tupperware Brands reported Q2 EPS of 84c versus the consensus estimate of 14c. The company reports Q2 revenue of $397.4M versus the consensus estimate of $316.2M.
Second Quarter Financial & Operational Updates
- Second quarter sales down 16% versus last year and 8% in local currency; excluding estimated COVID-19 impact, sales were estimated to be flat with last year
- GAAP diluted E.P.S. of $1.30 versus $0.81 in the prior year period
- Adjusted* diluted E.P.S. of $0.84 vs. $0.83 in the prior year period
- Retired approximately $100 million of Senior Notes through cash tender offers and open market purchases
- Realized approximately $60 million of $180 million ($150 million net) cost reduction target for FY 2020
“In the second quarter we pivoted to a new way to lead the business, a new way to operate the company and embraced a new growth strategy. Our performance reflects progress made to right size our cost structure and improve liquidity. We are now increasing our efforts to contemporize Tupperware and become a global leader in sustainable consumer solutions while leveraging the consumer influence of our iconic brand,” said Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands. “While we continue to navigate an ever changing environment impacted by COVID-19, I want to thank all of our team members and our sales force for quickly embracing digital tools that contributed favorably to our performance. We will also continue to focus on improving access for consumers to our products while delivering new, innovative products that meet their needs.”
“The improvements in profitability achieved in the second quarter demonstrate the ongoing commitment to improve operating margins and deliver $180 million in gross cost reductions in 2020. As we head into the second half of the year, we will continue to explore initiatives designed to improve our liquidity, proactively address near term debt obligations, and build a stronger balance sheet,” said Sandra Harris, Chief Financial Officer. “Although our 4.75% 2021 Senior Notes became current in June, we have successfully retired approximately $100 million of those notes at a discount to par. Additionally, we continue to work with our advisors to explore opportunities to repurchase, refinance or extend the maturity on our debt, and we believe that our improved profitability and revenue growth through the Turnaround Plan, together with the anticipated sale of our Orlando real estate and other non-core assets, will contribute to our ability to meet our future debt obligations.”
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