Tupperware Brands, the Orlando, Florida-based direct seller of storage and serving products, announced its financial results for the first quarter of 2017.
Net sales were $554.8 million, up 6 percent in dollars and local currency. Emerging markets, accounting for 66 percent of sales, achieved a 9 percent increase in dollars and local currency. The most significant contributions to the first quarter growth in local currency were in Brazil, China, Tupperware Mexico and Tupperware South Africa, partially offset by Indonesia. Established markets were down 1 percent in dollars and local currency, most significantly in France, net of a significant increase by Tupperware United States and Canada. There was an estimated 1 percentage point benefit on the year-over-year sales comparison of the whole company from net favorable time shifts.
Tupperware North America segment sales were up 10 percent in dollars and 14 percent in local currency. United States and Canada sales were up 15 percent in dollars and 14 percent in local currency, with Tupperware Mexico up 4 percent in dollars and 15 percent in local currency.
In Europe, segment sales were down 3 percent in dollars and 2 percent in local currency. South America sales, up 42 percent in dollars and 27 percent in local currency, was led by Brazil, up 52 percent in dollars and 24 percent in local currency. Asia Pacific sales growth, led by China, was up 31 percent in dollars and 38 percent in local currency, partially offset by Indonesia, down 9 percent in dollars and 10 percent in local currency.
Tupperware’s total salesforce of 3.2 million was up 5 percent versus the prior year, a 4-point sequential improvement from the end of 2016, and average active sellers were down 1 percent, a 7-point improvement from the fourth quarter.
“Solid execution of direct selling fundamentals, along with innovative digital strategies across the portfolio, allowed more of our businesses to leverage our strong aspirational brand and provide an earnings opportunity that builds confidence in the 3.2 million women of our global salesforce,” said Rick Goings, Tupperware’s Chairman and CEO. “With double-digit salesforce size advantages and the wind at our backs in several key businesses, we expect the momentum to continue in 2017, and have raised our sales and earnings per share outlooks accordingly.”
To read the full report, click here.
Tupperware placed No. 10 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $2.2 billion for 2016.