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Tupperware Stock Sinks 29% on Dismal Sales, Dividend Slashed 60%

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Jan. 30 2019, Published 1:33 p.m. ET

Stock sinks after Q4 results

Tupperware Brands (TUP) stock was down 29% as of 12:25 PM ET today as the company missed analysts’ sales expectations for the fourth quarter of 2018 and slashed its dividend by 60%.

Tupperware’s fourth quarter of 2018 sales declined 14.1% to $505.9 million, missing analysts’ consensus expectation of $542.5 million. The company’s sales declined in the United States as well as across its international segments. In particular, Tupperware experienced significant headwinds in India and Indonesia.

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Tupperware’s adjusted EPS came in at $1.33 in the fourth quarter, in line with analysts’ forecast. However, the company’s adjusted EPS declined 16.4% on a year-over-year basis as the favorable impact of lower taxes was more than offset by currency headwinds. For the full year, the company’s sales declined 8.3% to $2.07 billion in 2018 while adjusted EPS declined 11.2% to $4.30.

Dividend slashed

Tupperware disappointed investors by announcing a 60% cut in its quarterly dividend to $0.27 per share. The company cut its dividend so that it can use the funds for growth and transformation initiatives.

The company intends to invest $100 million through 2022 in growth initiatives, including product innovation, deploying technology, and streamlining organization structure. Tupperware expects its transformation initiatives to generate $50 million in annualized savings.

Tupperware anticipates that its 2019 sales will decline 2%–4%. The company expects its 2019 adjusted EPS in the range of $4.06–$4.21.

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