I think Tupperware is an intriguing idea.
At yesterday’s closing price of $8.77, you’re paying $390m for a company with a busted business model but one that still has about $1.5b in revenue for an operating income of about $200m. What else? Well it doesn’t seem like a lot of money for an iconic brand. What about changing the business model, and just selling thru regular retail channels? OK, they thought of that:
• Enter new sales channels
(retail, ecommerce, B2B)
• Accelerate omnichannel
expansion
and
Expanding into new channels is a key component of our strategic plan that will enable us to meaningfully increase consumer access to Tupperware
product. It also reduces the reliance on a single channel and therefore, is expected to minimize the volatility of our performance during any given
period.
Worth keeping an eye on. I agree with Jim’s comments about the business, but there’s a price for everything. I thought about it and passed last year when the share price was much lower, so I guess I’m anchoring on that, but if the share price goes seriously downhill again, I’ll be tempted.
dtb