KEY POINTS

  • The beauty line, Nutrimetics, will no longer be part of the company.
  • The divestment is part of a larger “get back to basics” strategy.

What’s going on with Tupperware stock

Tupperware stock popped Tuesday after releasing an announcement that made shareholders very happy.

We’re not talking about the company’s standard line of food storage containers. Instead, it announced that it was selling one of its product lines, and investors praised the move by increasing Tupperware Brands (NYSE:TUP) share price by more than 16%.

Why we care

Tupperware released the Nutrimetrics beauty sector from its grasp. The firm has agreed to sell the business to privately owned New Image Group. However, it revealed neither the price nor the critical elements of the transaction. It also declined to say when the firm would complete the transaction.

This was an anticipated divestment. It comes on the heels of previous non-core assets, such as beauty lines Avroy Shlain and House of Fuller, being abandoned. Tupperware sold the former in early 2021 and the latter in the second quarter of 2022. In its press release announcing the sale, CEO Miguel Fernandez stated:

“We remain focused on executing on our turnaround plan, and the sale of our non-core assets, including Nutrimetics, aligns with this strategy by enabling the Company to increasingly focus on growing our core Tupperware brand … Our goal remains unchanged: to restore this iconic brand to sustained growth and deliver increased value to all stakeholders … This transaction represents yet another milestone along that path.”

What now

Given the lack of information, it’s difficult to tell whether this was a good deal for Tupperware. However, investors did not appear to mind, given that the specialized consumer products firm is achieving its apparent and sensible objective of reducing down to its core competence, which has always been those durably popular food containers and associated items. It makes perfect sense that Tupperware stock popped after the news.

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