Despite a dip in year-over-year revenue, Tupperware Brands Corp. (TUP—NYSE) achieved its second consecutive quarter of double-digit revenue growth in the U.S. and Canada, the company said in its Tuesday earnings report.
In the third quarter, sales of the company’s kitchenware, beauty and personal-care products totaled $521.0 million, down 11 percent from a year ago. The results, driven by improving sales in the Americas, represent a 7 percent increase in local currency. Excluding some items, earnings were 79 cents per share, down 12 percent but exceeding the company’s guidance by 5 cents.
“I am pleased that our management teams were able to build momentum going through the quarter, to bring in a 7 percent local currency sales increase, beating the high end of our guidance range,” Chairman and CEO Rick Goings said in the company’s report. “The strong performance shows how the flexibility in our business model enables us to react to economic and political volatility.”
In the U.S. and Canada, where sales have slowed for many direct selling companies, revenue increased 14 percent in dollars. The region benefited from a 20 percent increase in sellers versus the third quarter of 2014. In Canada, the company sustained momentum despite a new salesforce compensation plan going live in the third quarter, Goings told investors during the company’s earnings call.
Emerging markets remain the backbone of the business, accounting for 70 percent of all sales. Management highlighted strong local currency gains in South Africa, where Tupperware sales were up 52 percent, and the Avroy Shlain beauty business posted a 23 percent increase in sales. In South America, Brazil generated a 21 percent increase in local currency, while Argentina spiked 39 percent on the back of inflation-related price hikes. China and Indonesia also achieved double-digit percentage gains in local currency, though the company’s Asia Pacific revenue fell 8 percent in dollars versus a year ago.
In the fourth quarter, Tupperware expects an 8 to 10 percent decrease in year-over-year sales, with earnings in the range of $1.22 to $1.27. The company said full-year earnings will likely fall between $3.76 and $3.81, with sales down 11 to 12 percent from 2014.
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