Tupperware Brands Corp.'s stock experienced a significant setback on Tuesday, with a drop of 19.7%. This came just one day after the stock achieved its highest ever daily gain in what can only be described as a meme-like rally.
On Monday, without any apparent news to trigger such a surge, Tupperware's stock skyrocketed to an astonishing 75.6%, marking its largest one-day percentage gain to date. In fact, the previous record for Tupperware shares was set on July 29, 2020, with a 67.7% increase. The extraordinary surge in stock value on Monday was accompanied by a trading volume of nearly 132.7 million shares, surpassing its average 65-day trading volume of 4.2 million shares.
While this surge may have seemed like a positive turn for Tupperware, it should be noted that the stock has actually fallen by 68.6% since the beginning of this year. This is in stark contrast to the S&P 500, which has seen an increase of 18.8%.
In March, Tupperware released its preliminary full-year results, revealing an 18% decline in sales compared to the previous year. When adjusting for currency fluctuations, the drop amounts to approximately 14%. Chief Financial Officer Mariela Matute acknowledged that 2023 would be a transitional year for the company as it focuses on stabilizing its business and establishing a solid financial foundation.
In response to its near-term challenges, Tupperware issued a going-concern warning in April and sought the assistance of financial advisors. The company recently entered into a waiver agreement with some of its creditors; however, there are concerns about its ability to make an interest payment this month.
Tupperware's share price has plummeted to around $1.30, having dipped below $1 earlier this year. The market capitalization of the company currently stands at approximately $70.3 million.
It is clear that Tupperware is facing significant obstacles, and only time will tell if it can successfully navigate these challenges and restore stability to its business.