American party retail group Party City has announced its Q4 and full results for 2019, with total sales continuing to decline and online sales continuing to increase.
Total revenues for the retailer saw sales of party supplies in Q4 falling by 9.2% from a year earlier, to $73.6 million. Total retail sales also decreased by 12.6% over the same period, principally due to the ongoing store optimisation programme as well as soft Halloween sales at our Party City stores and temporary Halloween stores.
Online sales continued to rise though, with Q4 e-commerce sales increasing by 2.1% – or 14.7% when including click and collect orders.
Full year results were broadly similar, with retail sales down by 3.4%. Following a full-scale store optimisation programme which saw 55 stores closing across North America, the company ended 2019 with 777 company-owned stores and 98 franchise stores.
James M. Harrison, chief executive officer, commented on the results, saying that: “2019 was a challenging year due to a confluence of events, including both external headwinds and execution issues, that impacted both sales and margins. As we look ahead, we are taking actions in our retail business to improve our operating model and performance, which is at the core of our plans to return our total business to growth.”
He continued: “We will continue to focus on executing against our strategic priorities, keeping the customer at the forefront of our decision-making process across areas including product development, merchandising, marketing, store and online operations. We believe we are positioning ourselves to maximise the potential of our vertical model and drive sustainable long-term growth.”
