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Tupperware receives NYSE non-compliance notice

EditorNatashya Angelica
Published 19/04/2024, 21:40
TUPBQ
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ORLANDO - Tupperware (NYSE:TUP) Brands Corporation (NYSE: TUP), known for its food storage products, disclosed on Monday that it has received a non-compliance notice from the New York Stock Exchange (NYSE) due to a delay in filing its annual report for 2023.

The notice, which does not immediately affect the company's stock listing, gives Tupperware six months from March 29, 2024, to file its Form 10-K with the Securities and Exchange Commission (SEC) and regain compliance.

The filing delay is attributed to the company's late quarterly filings for the first three quarters of 2023, material weaknesses in internal control over financial reporting, additional accounting and auditing procedures, and staff attrition in its accounting function. Tupperware became current with its quarterly reports on March 29, 2024, after appointing KPMG LLP as its new auditor in late January 2024.

Despite the NYSE notice, Tupperware has expressed its intention to file the overdue Form 10-K within the six-month remediation period. If unable to meet this deadline, the company may be eligible for an extension of up to six additional months, depending on the circumstances.

The company's caution regarding forward-looking statements indicates that there are no guarantees on the timing of the completion of its consolidated financial statements or the audit for the fiscal year ended December 30, 2023.

Tupperware Brands Corporation, established in 1946, is recognized for its contributions to reducing food waste, promoting female entrepreneurship, and popularizing the home party model. The company's products are sold globally and have become a part of American culture.

This report is based on a press release statement issued by Tupperware Brands Corporation.

InvestingPro Insights

In light of Tupperware Brands Corporation's recent challenges, including the NYSE non-compliance notice, the company's financial metrics and analyst insights offer a detailed perspective on its market position. With a market capitalization of $44.22 million, Tupperware's valuation reflects the difficulties it faces.

Notably, the company's gross profit margin remains impressive at 62.12% for the last twelve months as of Q1 2023, despite a 17.47% decline in revenue during the same period. This suggests that while Tupperware is facing sales headwinds, its cost management in producing goods is still efficient.

Still, analysts have expressed concerns, as evidenced by two of them revising their earnings estimates downwards for the upcoming period. This is likely in response to the anticipated sales decline in the current year and the company's recent stock performance, which has been volatile.

Over the last month, the stock price has dropped by 28.44%, and the year-to-date return has plummeted by 50.27%, signaling investor caution.

For those considering an investment in Tupperware, it's worth noting that the company is not currently profitable, with a negative P/E ratio of -0.13. Moreover, Tupperware's stock has experienced significant price declines over multiple time frames, including a 48.19% fall over the last three months. This level of volatility and downward trend could be a point of concern for potential investors.

For readers seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Tupperware's financial health and future prospects. With the use of the coupon code PRONEWS24, readers can access these tips and receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. Currently, there are 14 additional tips listed on InvestingPro for Tupperware, offering a comprehensive view of the company's financial landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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