Tupperware posts loss as new CEO grapples with coronavirus

Tupperware has struggled recently to recruit new sellers

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Tupperware Brands Corp. reported lower first-quarter sales and swung to a loss, a performance that comes as the company known for food containers navigates the coronavirus pandemic under new leadership.

The company reported a net loss of $7.8 million, or 16 cents a share, compared with a profit of $36.9 million, or 76 cents a share, in the first quarter last year.

Tupperware on Wednesday said it generated sales of $375.9 million for the first quarter, down from $487.3 million a year earlier.

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"During the first quarter of 2020, the impact of Covid-19 on the company's business was most pronounced in Europe and Asia Pacific," Tupperware said.

Tupperware relies on a direct-selling force to sell and distribute its products, such as food containers and personal-care items.

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TUPTUPPERWARE BRANDS CORP.
$3.34
-0.45 (-11.87%)
NWLNEWELL BRANDS INC.
$13.58
-0.81 (-5.63%)

The company has struggled to recruit new sellers recently and tapped Miguel Fernandez, who previously served in executive positions at Avon Products Inc. and Herbalife Nutrition Ltd., as its new chief executive.

TUPPERWARE PARTIES PACK PUNCH FOR MODERN SELLERS

Mr. Fernandez, who started as CEO on April 6, said Wednesday that the company was accelerating efforts to generate at least $50 million in cost savings this year.

Photo courtesy of Tupperware

Tupperware said its active salesforce globally stood at almost 490,000 people in the first quarter, down 15% from last year.

The company withdrew its financial forecast for 2020, citing uncertainty generated by the pandemic.