Tupperware profits soar as pandemic shuts down leftovers

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SILVER SPRING, Maryland (AP) – Tupperware relied on social gatherings for explosive growth in the mid-20th century. In the 21st century, it’s social distancing that fuels sales.

Pain in the restaurant has become Tupperware’s gain with millions of people in a pandemic opening cookbooks again and searching for solutions to leftovers. They found him in Tupperware, suddenly a “computer brand” five decades after what seemed like his heyday.

The company appeared to be on life support, showing negative sales growth in five of the past six years, a trend that appeared to be accelerating this year.

The heyday of the Tupperware Party, first held in 1948, was long gone, which offered women a chance to run their own businesses. This system worked so well that Tupperware withdrew its products from stores three years later. But it struggled as more and more families gave up on making dinner from scratch and eating more.

Then the pandemic struck.

Profit in the last quarter quadrupled to $ 34.4 million, Tupperware reported Wednesday.

The sales explosion caught almost everyone off guard and shares of Tupperware Brands Corp., which had been up since April, jumped 35% to a new high for the year. Shares that could be held for around $ 1 in March, closed at $ 28.80 on Wednesday.

Tupperware stands out from most other businesses that thrived during the pandemic. Unlike Netflix, Amazon.com, Peloton, or even DraftKings, it doesn’t rely on a high-tech platform.

However, this is certainly not the only one, as the pandemic is changing the way we spend our time perhaps faster than at any time in our lives.

On Monday, toy maker Hasbro said its games division, which includes board games like Monopoly, saw revenue increase by 21%.

On Wednesday, Tupperware reported adjusted quarterly earnings of $ 1.20 per share, triple what Wall Street had expected. Revenue of $ 477.2 million was about 30% higher than forecast and 14% higher than last year.

CEO Miguel Fernandez said the Orlando, Florida-based company has turned more to digital sales to accommodate those taking refuge in the pandemic. He also noted “increased consumer demand”.

The company launched a turnaround campaign earlier this year. Fernandez, who once headed Avon, was named CEO in March as COVID-19 infections began to spread in the United States

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