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Tupperware has gained popularity in North America as more people cook at home during the coronavirus pandemic.
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Tupperware Brands Corp. TUP, +34.60% stock catapulted more than 33% in Wednesday trading after third-quarter earnings got a bump from the surge in consumers eating at home during the COVID-19 pandemic.
Sales in North America jumped 42% year-over-year, reaching $146.3 million, according to the earnings release. This is the highest level of sales growth the region has seen in two decades and the highest level of absolute sales in the region since 2002, said Miguel Fernandez, Tupperware’s new chief executive, on the earnings call, according to a FactSet transcript.
Tupperware reported third-quarter profit and sales beat consensus and increased year-over-year.
“We are aligning our brand more closely with the new norm of people cooking and eating at home with products [that] help them save time with food prep and products to help them save money by keeping their food fresher and safer longer,” said Richard Goudis, newly appointed executive vice chairman, on the earnings call, according to FactSet.
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Tupperware executives used the earnings call to lay out a business turnaround strategy that will include new revenue streams and a focus on the environment. On Wednesday, the company also announced that its charitable foundation has made a $1 million donation to the National Park Foundation.
Besides the effort in the national parks, Goudis acknowledged the consumer concern for the environment in the home.
The company is also exploring “sub-brands” that are eco-friendly and offer more items at different price points to “address the needs of all consumer socioeconomic levels.”
See: E-commerce gains importance for grocery consumers most financially impacted by COVID-19
And the company is considering new licensing deals and other growth measures.
Sales in other parts of the world grew as well, with Europe up 23% to $121.2 million, and South America up 4%to $69.6 million.
Asia Pacific was down 6% for the quarter, to $140.1 million.
Tupperware shares have skyrocketed 231.5% for the year to date while the Dow Jones Industrial Average DJIA, -2.98% is down 6.7% and the S&P 500 index SPX, -2.97% is up 1.8%.
