July 23 (Reuters) - Tupperware Brands Corp, known for its colorful food containers, cut its full-year sales and profit forecast, citing lower sales in Europe.
The company, whose shares fell as much as 11 percent, also reported lower-than-expected sales for the second quarter ended June 28 due to poor demand in Germany.
Germany is the largest among the company’s established markets, which include North America, Western Europe and Scandinavia, Australia, New Zealand and Japan.
Sales in its Tupperware North America business were down 5 percent. The segment accounted for 13 percent of total sales last year.
“The quarter’s results revealed weakness in important markets that will be difficult to overcome in the near term,” BMO Capital Markets analysts wrote in a note.
Established markets brought in about 35 percent of the company’s revenue in the first quarter while emerging markets contributed the rest.
However, sales in emerging markets, which include Brazil, China and Indonesia, rose 10 percent in local currency.
Tupperware now expects sales to remain flat or contract up to 2 percent for the year ending Dec. 27 with sales in local currency in Europe expected to be down slightly.
It had earlier expected sales to remain flat or grow up to 2 percent, with flat sales in Europe.
The company cut its adjusted earnings forecast to $5.40-$5.50 per share from $5.66 to $5.81 per share.
The company’s shares were down 10 percent at $76.29 in afternoon trading on the New York Stock Exchange on Wednesday. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian)