Zacks Investment Research recently ran an article by Tracey Ryniec which gave some insight into Tupperware’s presentation at the Bear Stearns conference held this past March.
With an independent sales force of two million, the Company has has expanded to 100 countries selling eight brands including Tupperware, Avroy Shlain, Beauticontrol, Fuller, Naturecare, Nutrimetics, Nuvo, and Swissgarde.
Tupperware produces storage and serving solutions for the kitchen and home. The other brands focus on beauty and personal care products, including cosmetics and skin care products.
In the last few years, the company has expanded beyond its famous Tupperware brand to add more worldwide beauty lines to its stable of brands. For instance, Swissgarde is a beauty products line sold exclusively in Africa.
At a Bear Stearns Conference in New York in early March, the company said it was focusing on the emerging markets and growing the beauty products segment. Currently, 40% of the company’s profit comes from the emerging markets. TUP’s goal is to expand it to more than 50%.
For 2008, Tupperware expects sales to rise between 4% and 6% in Europe and Asia Pacific, and 5% to 7% in North America. Worldwide, the company projects the Tupperware division to grow 4% to 6%, compared to 14% in 2007, while the beauty products division is expected to increase sales 7% to 10%, compared to 12% in 2007.
Despite the sales growth guidance given by the company, brokerage analysts still expect earnings per share growth to be strong for the company in 2008. Analysts estimate earnings growth of 17% in 2008.
Tupperware beat on fourth-quarter earnings estimates by 14.81% and has surprised each of the last four quarters on average of 33.39%.
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