Shares of Tupperware Brands Corp. (TUP) are falling more than 36 percent in the morning trade on Tuesday at $3.65, near to its 52-week low, after the household products company warned of a profit shortfall in fiscal 2019 and also said it was conducting an investigation into its financial accounting.
In addition, the company forecast a need for “relief” from a leverage ratio covenant. The stock has traded in a range of $3.53 to $31.24 in the past 52 weeks.
Monday, Tupperware Brands said it will not hold its earnings call on February 25 as scheduled, and will file with the Securities and Exchange Commission to provide a 15-calendar day extension within which to file its Form 10-K for the fiscal year ended December 28, 2019.
Tupperware is conducting an investigation regarding the impact of certain financial reporting matters in its Fuller Mexico beauty business and to finalize its tax rate.
For fiscal 2019, the company expects sales to be in line with previously provided outlook ranges of down 12 percent to 14 percent as reported, and down 8 percent to 10 percent in local currency.
The company projects adjusted earnings per share for the year to be in a range of $1.35 to $1.70, down from $4.30 in the prior year. Tupperware also forecast a need for relief concerning its existing leverage ratio covenant in its $650 million credit agreement dated March 29, 2019, to avoid a potential acceleration of the debt that could hurt the company.
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