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Tupperware Identifies New $1.5 Million Accounting Error Six Weeks After Initiating SEC Settlement Talks
Company has once again overstated earnings amid settlement talks with the SEC over prior accounting misstatements.
August 4, 2022
Tupperware Brands (TUP) has once again misstated its financials, a pattern we’ve been documenting for the last 18-months. In its latest quarterly filing, Tupperware disclosed it had recorded an out-of-period adjustment which resulted in a net $1.5 million decrease in income for the quarter ended June 25, 2022. The adjustment reduced Tupperware’s year-to-date net income by $1.3 million.
We first warned investors last year that the company’s auditor blessed its financials prior to a $3.1 million earnings restatement. The company blamed its accounting trouble on rogue employees in Mexico. Tupperware said managers at its Mexico plant overrode the company’s internal controls over financial reporting, which explained why PwC blessed the companies controls the same year the financials were misstated.
In addition to overstating pre-tax income 1.46%, we detailed how the trouble extended far beyond the Mexico plant as Tupperware’s new management seemingly delivered a kitchen sink annual report. In all, Tupperware’s 2021 annual report includes at least $362.7 million in restatements, adjustments, charges, and allowances.
The new accounting error comes just six weeks after we reported Tupperware was in talks to settle prior accounting issues with the SEC. The latest filing reveals Tupperware has recorded a reserve related to the settlement but did not quantify the amount for investors.
It’s not clear to us where the estimated liability is on the balance sheet. DuDil has contacted Tupperware and asked the company to quantify the amount. We’ll update subscribers when new information is developed.
Even after a 13.5% one day rally, Tupperware shares are down 60.5% since our original DuDil Alert March 18, 2021.
Related: AMWD, NWL, EL, HENKY, LCUT, NUS
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