Party City Registers 7.7% Sales Growth In Q4; Provides Upbeat FY22 Outlook

Party City Holdco Inc PRTY reported fourth-quarter FY21 sales growth of 7.7% year-on-year, to $698.31 million, beating the consensus of $697.25 million.
Comparable sales increased 17.8% versus last year, driven by strength in core categories. Total retail sales increased 12.6%.
The gross profit margin increased 480 basis points Y/Y to 30.8%. The operating margin was 0.4%, and operating income for the quarter was $2.7 million.
Adjusted EPS of $0.40 matched the Street view.
Adjusted EBITDA was $105.2 million, versus $77.3 million the previous year.
The total number of corporate Party City stores was 759 as of December 31, 2021, versus 746 last year.
The company held $47.9 million in cash and equivalents as of December 31, 2021.
"While we expect inflation and supply chain headwinds to persist in 2022, we remain committed to delivering an improved customer experience as well as appropriately exercising our pricing power," said CEO Brad Weston.
Outlook: Party City sees FY22 sales of $2.275 billion - $2.35 billion, above the consensus of $2.21 billion.
Price Action: PRTY shares are trading higher by 0.23% at $4.40 on the last check Monday.