Tupperware (NYSE:TUP) recently revealed that it will not be able to file its third-quarter earnings report on time. Worryingly, management cited financial headwinds and attrition as contributing factors to the delay. As a result, TUP stock is dropping more than 2% as of this writing.
According to a Form 12b-25 filed with the U.S. Securities and Exchange Commission (SEC) signed Nov. 9, Tupperware said that it is “unable to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the ‘Q3 Form 10-Q’) by the prescribed due date.” Per TipRanks, market observers initially anticipated the company to release Q3 data on Nov. 1.
Tupperware noted that its “challenging financial condition” and “recent departures in key control positions within the accounting department and other supporting departments” have effectively made its efforts to complete the financial disclosure untenable. In addition, management cited employee attrition, resulting in resource and skillset gaps.
However, not everything about Tupperware’s Q3 report delay stems directly from internal chaos. Management also pointed out that PwC’s decision last month to decline to continue as Tupperware’s accountant contributed to the delay, per Seeking Alpha.
TUP Stock Faces Significant Hurdles Ahead
Fundamentally, this latest piece of drama is another distraction that Tupperware simply does not need. Caught in a battle for relevance ever since it succumbed to a freefall in early 2018, the company desperately needs wins. Aside from a rise during the meme-trade phenomenon, though, TUP stock has looked ugly. Shares have given up more than 60% since the start of the year, .
Last month, CNN pointed out that Tupperware has been grasping at straws to fit into the modern retail ecosystem. Traditionally, the company has sold its branded containers almost exclusively through in-home “Tupperware parties” or via its website. Among the few exceptions, though, have been brief and limited pilot programs with certain retailers.
One of those retailers was Target (NYSE:TGT). Through a partnership, Tupperware began rolling out its containers onto Target’s shelves last October. However, as CNN notes, that may be too little, too late. Unfortunately, the kitchenware producer seems to have failed to adapt to an evolving marketplace. Additionally, tough competition and shifting needs among young consumers have devastated TUP stock.
Still, on a positive note, Tupperware isn’t giving up. In August, management “reached a deal with its creditors to reduce its interest-payment obligations.” Last month, the company also brought in consumer products veteran Laurie Ann Goldman to take over the helm as CEO.
Why It Matters
Despite best efforts, investors should realize that TUP stock is extremely speculative. A key indicator stems from the fact that, in the past three months, no analyst has covered the security. On TipRanks, the last rating for shares was a no-price-target “hold” from D.A. Davidson.
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On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
