Party City Posts Narrower Q1 Loss

Party City Holdco Inc PRTY reported a narrower loss for the first quarter on Thursday. The Elmsford, New York-based company posted a quarterly loss of $8.5 million, or $0.09 per share, versus a year-ago loss of $19.9 million, or $0.21 per share. Excluding items, the company posted a loss of $0.03 per share, versus a loss of $0.09 per share. Its revenue gained 6.7 percent to $462.1 million. Party City's brand comparable sales rose 5.2 percent in the quarter. Retail sales climbed 4.6 percent to $313.3 million, while net third-party wholesale revenue jumped 11.8 percent to $144.9 million in the quarter. Total gross profit margin shrank 30 basis points to 35.8 percent of net sales in the first quarter, from 36.1 percent of net sales in the year-ago quarter. Adjusted EBITDA surged 10.4 percent to $49.5 million from $44.8 million. Operating expenses rose 0.8 percent year-over-year to $143.8 million. James M. Harrison, Chief Executive Officer said, "Our performance this quarter illustrates the strong, competitive advantages of our unique, vertically-integrated business model. We continue to make progress executing on our multiple growth strategies which include further expanding our vertical integration, pursuing alternative markets and expanding our global footprint." For the full year, the company projects adjusted earnings of $0.97 to $1.06 per share, on revenue of $2.25 billion to $2.35 billion. The company also projects brand comparable sales growth of 3 percent to 3.5 percent. Party City shares fell 0.05 percent to close at $21.75 yesterday.