Beauty and the bowl
Tupperware Brands Corp. (TUP) is known domestically as the maker of plastic containers sold from neighbor to neighbor through at-home parties. But in emerging markets, it’s known for beauty products, through brands like Avroy Shlain, BeautiControl, Fuller, and Swissgarde. It generates about 90 percent of profit overseas, says Jefferies Research analyst Douglas M. Lane. He rates the shares “buy.”
The company is expanding in Argentina and Brazil while rebuilding sales in established markets like the U. S. and Germany, Lane says. Despite a U. S. spending slowdown, Tupperware should benefit as the weak job market prompts more people to sell the products to supplement their incomes, says Lane.
Tupperware beat first-quarter earnings estimates and raised its full-year profit and sales outlook above expectations. Analysts now expect 14 percent profit growth this year, according to Thomson Financial. Currency exchange rates are a driver, as overseas revenue is enhanced by the weak dollar.
Avondale Partners analyst Amy Greene Vinson says the dollar benefit is already factored in 2008 revenue forecasts.
