Beauty fails to catapult Tupperware sales

By Simon Pitman

- Last updated on GMT

Related tags United states Revenue

Tupperware Brands, the US-based retailer of kitchenware, cosmetic
and beauty products, has announced a disappointing second quarter
in Europe and the US, further exacerbated by falling cosmetic and
beauty sales.

Overall results were helped by a strong performance in Asia and the emerging markets, boosting sales by 37 per cent in the second quarter to reach $438.6m.

But cosmetic and beauty sales were disappointing, despite the addition of the company's recently acquired International Beauty business, bought from Sara Lee last August for $556m.

In 2004 this business had sales amounting to $470 million in 18 countries including key growth markets in Asia and South America.

Beauty sales for the quarter were $135.4m, with the addition of the Sara Lee business adding approximately $125.7m - a figure that was flat compared to the same quarter in 2005.

The company said that its Fuller Mexico cosmetic and beauty sales were very strong, offset by lower sales in the Philippines and South Africa.

As was the trend throughout its North American business operations, the company reported that sales for its BeautiControl North America business were down 5 per cent. But despite this, profit was up 13 per cent, reflecting a higher gross margin and lower operating expenses compared to the corresponding quarter in 2005.

The company also said that it was making some changes to its executive line up, which will mean that the BeautiControl North America division will now be overseen by Simon Hemus, currently president of International Beauty.

The results of Tupperwar's cosmetic and beauty operations will come as a disappointment to the company, which last year predicted that sales would grow by 3 - 4 per cent, in turn helping to boost the company's bottom line.

But looking to the full year, the company is predicting a turn around for its cosmetic and beauty operations, with sales of the International Beauty division set to grow by 3 per cent.

In the first full year of trading since acquiring International Beauty, Tupperware Brands is expecting to boost the current share of its cosmetics revenue from 12 per cent to 35 per cent of its total $1.2 billion sales revenue.

Beauty Control, sells skin care, beauty, wellness, sun care and men's cosmetics through its international team of direct sales representatives, while International Beauty markets cosmetics, skin care products, fragrances and toiletries.

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