Party City Says Special Occasions And Events Are Up

Party City Holdco Inc., the party goods company, posted an approximately 36 percent jump in brand comparable sales in the first quarter from the 13 weeks that ended April 4, 2020. In a Monday (May 10) earnings press release, the company also said that brand comparable sales climbed by approximately 0.4 percent from the 13 weeks concluding on April 6, 2019.

“Despite operating in a pandemic-impacted environment with fewer in-person celebrations, brand comparable sales increased 0.4 percent versus 2019. While social gatherings were suppressed for a significant portion of the quarter, we were very encouraged by first-quarter results and sales momentum, which continued into April,” CEO Brad Weston said in the release.

As for its overall results, Party City Holdco posted a $5.4 million adjusted net loss on $426.8 million in total revenues. However, the company noted that first-quarter 2021 results had “one month of international results versus three months in the prior-year period” due to a “previously disclosed sale of a substantial portion of its international operations at the end of January 2021.”

Party City Holdco had 751 total corporate Party Store stores as of the end of March 2021, down from 757 in the prior-year period.

For the second quarter of 2021, the company anticipates total revenue to range between $475 million and $490 million. “As we look to the second quarter, we are confident in our overall positioning heading into the summer and graduation season,” Weston said.

Party City is a retail brand in addition to a company that brings together “manufacturing and sourcing operations” and “wholesale operations complemented by a multi-channel retailing strategy and eCommerce retail operations,” according to the release.

The news comes as cooped up American consumers are excited to dress up, get out, dine in eateries and reconnect with the world, according to new economic analysis.

The April Mastercard SpendingPulse report indicated that U.S. retail sales surged by 23.3 percent in April compared to a year ago, in the latest sign that the economy is bouncing back.