Tupperware Brands Corp. continued to feel the effects of a strong dollar while beating analysts’ estimates with a 12 percent drop in first quarter sales, according to the company’s earnings results posted Wednesday.
Revenue totaled $582 million, landing in the middle of Tupperware’s guidance for the quarter. In emerging markets, which account for two-thirds of its sales, the kitchenware company posted an 8 percent increase in local currency versus 2013.
Earnings fell from $52.2 million a year ago to $29.5 million, or 59 cents per share. Minus one-time costs, earnings came to $1.02 per share, exceeding the Zacks Investment Research concensus estimate of 98 cents a share.
Chairman and CEO Rick Goings pointed to Tupperware’s Argentina, Brazil, China, U.S. and Canada, and South Africa businesses as significant drivers of sales growth. The highest sales spike came from the South America region, where revenue was up 37 percent in local currency and dipped 21 percent in dollars, partly due to currency issues in Venezuela.
Tupperware North America reported modest growth, with U.S. and Canada sales up 7 percent and the salesforce expanding by 8 percent over the prior year.
For the second quarter, the company projects modest profit of $1.14 to $1.19 a share, below analysts’ estimates of $1.23 a share. Tupperware also expects sales to be down 11 percent to 13 percent.