Tupperware Brands Corp. on Wednesday raised its 2016 guidance, reporting better-than-expected profit, even as revenue continued to fall on the strength of the dollar.
The kitchenware company upped its full-year outlook 27 cents to $4.28 to $4.38 a share, versus earlier guidance of $3.81 to $3.91 a share. Sales for the year are now expected to be flat to down 2 percent, compared with management’s previous expectation of a 4 percent to 6 percent decline.
In the quarter ended March 26, revenue fell 10 percent to $525.7 million, with emerging markets accounting for 64 percent of sales.
The company gained momentum in North America, where sales rose 5 percent in dollars. Mexico saw a 20 percent local currency increase, while local currency sales were up 9 percent in both the U.S. and Canada, a segment that closed out the quarter with 13 percent more sellers than a year ago.
In South America, sales were up 24 percent in local currency, including a 21 percent increase in Brazil, but down 10 percent in dollars. Sales in Asia Pacific, the company’s largest region, dipped 3 percent in local currency and 9 percent in dollars, with a 16 percent increase in China offset by declines in India, Indonesia and the Philippines.
“First quarter sales were up 1 percent in local currency,” said Rick Goings, Chairman and CEO. “While we continued to achieve strong performances in Argentina, Brazil, China, Tupperware Mexico and Tupperware U.S. and Canada, we have continued to need to navigate through economic and political headwinds.”
For the quarter, the company cleared profit of $43.4 million, or 86 cents a share, up 47 percent from the first quarter of 2015. Excluding one-time costs, adjusted earnings were 91 cents a share, topping analysts’ estimates by 5 cents.