- Party City Holdco Inc (NYSE: PRTY) reported a second-quarter FY22 sales decline of 1.5% to $527.45 million, missing the consensus of $529.40 million.
- Brand comparable sales decreased 5.6% versus last year. Total retail sales fell 4.6%.
- The gross profit margin decreased 680 basis points Y/Y to 33.7%. The operating income for the quarter was $10.67 million versus $61.83 million a year ago.
- Adjusted EPS of $0.10 beat the consensus of $0.06.
- Adjusted EBITDA was $45.8 million versus $85.8 million the previous year, with the margin contracting 730 basis points to 8.7%.
- The total number of corporate Party City stores was 756 as of June 30, 2022, versus 749 last year.
- The company held $39.2 million in cash and equivalents as of June 30, 2022.
- "For the back half of the year, we continue to expect the supply chain volatility and inflationary pressures to persist and as a result, are revising our full-year outlook,” said CEO Brad Weston.
- Outlook: Party City sees FY22 sales of $2.15 billion - $2.225 billion (prior view of $2.225 billion - $2.30 billion).
- It expects brand comp sales to decline from -4% to -1% (prior view -1% to 2%).
- Adjusted EBITDA of $170 million - $200 million (prior view $235 million - $265 million)
- Price Action: PRTY shares are trading higher by 10.79% at $1.45 on the last check Monday.
Read at Benzinga