Summary
- Sales down 16%, dividend slashed 60%.
- New CEO, Tricia Stitzel (insider with HR background), is a catastrophic failure.
- BX or other PE firm with emerging markets and consumer experience is logical exit and best choice for all stakeholders.
On Wednesday, January 30, Tupperware (TUP) reported fourth quarter 2018 results. The results were bad and the market reaction was worse. Fourth quarter earnings of $1.33/share were 16% lower than last year, even after a $0.17/share contribution from a lower-than-forecast tax rate. Net sales were down a shocking 14%. Even worse were declines in markets that on a macro basis experienced strength (or an absence of material weakness) - the emerging markets of India and Indonesia and the established markets of France, Germany, and Italy. And if horrible sales and disappointing earnings were not bad enough, the Company slashed the dividend by 60% to $0.27/share. Reflecting the complete loss in confidence in the new CEO, Tricia Stitzel, the stock, as of this writing, is down around 30% over two days.
