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Tupperware Brands Made Key Changes in Its Management

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Price movement

Tupperware Brands (TUP) has a market cap of $3.3 billion. It rose 1.8% to close at $64.33 per share on September 27, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.7%, -1.1%, and 19.7%, respectively, on the same day.

TUP is trading 0.68% above its 20-day moving average, 1.7% above its 50-day moving average, and 15.3% above its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap Value ETF (VBR) invests 0.16% of its holdings in Tupperware. The ETF aims to track the CRSP US Small Cap Value Index. The index selects from a list of stocks in the 85%–99% range of market cap, based on five value factors. The YTD price movement of VBR was 12.5% on September 27, 2016.

The market cap of Tupperware’s competitors are as follows:

  • Newell Brands (NWL): $25.3 billion
  • Fortune Brands Home & Security (FBHS): $9.1 billion
  • Nu Skin Enterprises (NUS): $3.6 billion

Latest news on Tupperware Brands

Patricia A. Stitzel has been appointed Tupperware Brands’ president and chief operating officer, effective October 1, 2016. Stitzel will report to Rick Goings, TUP’s chair and chief executive officer.

Simon C. Hemus has been appointed Tupperware Brands’ vice chair and will report to Goings.

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Performance of Tupperware Brands in fiscal 2Q16

Tupperware Brands reported fiscal 2Q16 net sales of $564.7 million, a fall of 4.1% compared to $588.9 million in fiscal 2Q15. Net sales of the Europe, Beauty North America, and TW North America segments fell 12.6%, 19.0%, and 0.75%, respectively.

Net sales of the South America and Asia segments rose 7.7% and 1.5%, respectively, in fiscal 2Q16 compared to the prior year’s period. The company’s gross profit margin and operating income fell 0.67% and 17.7%, respectively, in fiscal 2Q16 compared to fiscal 2Q15.

Its net income and EPS (earnings per share) fell to $52.4 million and $1.03, respectively, in fiscal 2Q16 compared to $62.0 million and $1.23, respectively, in fiscal 2Q15.

Tupperware Brands’ cash and cash equivalents fell 1.0% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio rose to 0.93x, and its long-term debt-to-equity ratio fell to 3.4x in fiscal 2Q16. That compares to a current ratio and long-term debt-to-equity ratio of 0.90x and 3.8x, respectively, in fiscal 4Q15.

Projections

Tupperware Brands has made the following projections for fiscal 3Q16:

  • US dollar sales growth of 1%–3%
  • EPS of $0.94–$0.99
  • local currency sales growth of 2%–4%

The company has made the following projections for fiscal 2016:

  • US dollar sales growth of -2% to -1%
  • EPS of $4.18–$4.28
  • local currency sales growth of 3%–4%
  • tax rate of ~26.8% on a US GAAP (generally accepted accounting principles) basis

In the next part, we’ll take a look at Tyson Foods (TSN).

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