Shares of food storage products company Tupperware Brands (NYSE:TUP) tumbled on Wednesday following a second-quarter report that missed expectations. Revenue was down a double-digit percentage, and the company lowered its guidance for the full year. The stock was down about 17.5% at 3 p.m. EDT.
Tupperware reported second-quarter revenue of $475.3 million, down 11% year over year and $28 million below the average analyst estimate. Adjusted for currency, sales were down 7%. The company blamed geopolitical concerns and consumer spending headwinds in some of its markets for the weak sales.
Non-GAAP (adjusted) earnings per share (EPS) came in at $0.98, down from $1.09 in the prior-year period and $0.04 lower than analysts were expecting. The company reduced its operating costs during the quarter, but it wasn't enough to fully offset the lower revenue. Gross margin was 67.5%, roughly flat compared to the prior-year period.
Tupperware won't be buying back any shares in 2019. Instead, it plans to invest in its turnaround, continue to pay its dividend, and reduce debt.
Along with the second-quarter results, Tupperware lowered its full-year guidance. The company now expects revenue to decline by 9% to 11%, more than an earlier estimate of 8%. Adjusted EPS is expected between $3.45 and $3.60, well below previous guidance of $4.30.
Following Wednesday's decline, Tupperware stock trades at around $14.60 per share, just about 4 times its guidance for adjusted earnings. Clearly, the market doesn't expect the company to turn itself around anytime soon.