Food storage container maker Tupperware Brands Corp. has lowered its annual forecast, saying renewed strength in the dollar is cutting into its international revenue.
Tupperware had expected to report a full-year gain of 23 cents to 25 cents per share from the positive effect of the weaker dollar on sales overseas. But as the dollar has gained strength compared with other major currencies, Tupperware now expects a currency benefit of just 10 cents to 12 cents per share.
The company revised its profit forecast to a range of $2.40 to $2.45 per share for the year, or $2.64 to $2.69 per share excluding one-time costs. Tupperware said revenue should grow between 12 and 14 percent, which suggests a range of $2.22 billion to $2.26 billion.
Tupperware had previously forecast adjusted profit of $2.77 to $2.82 per share on revenue growth of 14 percent to 16 percent, or $2.26 billion to $2.3 billion. On average, analysts polled by Thomson Reuters expect higher full-year profit of $2.80 per share, excluding one-time items, on $2.3 billion in revenue.
"Given the turmoil in the financial services industry and the economy in general and the impact on financial markets, we concluded it would be appropriate to give investors more current visibility on the strength of our business and financial results," Chairman and Chief Executive Rick Goings said in a statement late Thursday.
For the third quarter, the company says adjusted profit will come in around the high end of its forecast range of 37 cents to 42 cents per share. However, the shift of an insurance recovery gain into the fourth quarter from the third quarter will mean that net income will come in at the low end of its previously forecast range of 39 cents to 44 cents per share.
Revenue growth is expected at the high end of Tupperware's forecast of 13 percent to 15 percent growth, or $513.8 million to $522.9 million.
Analysts expect an average profit of 42 cents per share on $518.7 million in revenue.
Tupperware said it is trending better than expected in several markets in the Asia Pacific and North America regions, but below-plan in its North American beauty business. Other benefits to earnings results in the current quarter are a lower tax rate and the positive effect of the company's share price declines on long-term management incentive plan costs.
Tupperware shares have fallen 37 percent since peaking at $44.98 in April.
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