American party retail chain Party City revealed its Q2 trading results yesterday (Thursday 6 August), with a revenue drop of 54.6% on a constant currency basis during that period.
The figures also reveal that total retail sales slipped by 56.3%, due to the temporary closure of all of the company’s retail stores throughout April, May and much of June. North American e-commerce sales grew by 83.2% over the same period.
Sales trends went on to improve throughout the quarter, with most Party City retail branches across the US open by 22 June. Brand comparable sales fell 52.4% throughout April and most of May, but recovered quickly and were only down by 6.5% in June and were positive by July.
“Against a difficult, pandemic-impacted backdrop, our teams continued to execute with discipline and demonstrate their resilience as we adapted quickly to changing operating conditions in the second quarter,” said chief executive officer Brad Weston. “We made progress on our key strategic priorities, including the rapid launch and expansion of additional customer fulfillment options, as well as relevant merchandising and marketing strategies that resonated with our customers and reflected their evolving approach to celebrations. We also took significant steps to strengthen our financial position.”
Brad continued, “As our stores reopened, overall business trends improved and we have seen a continuation of that improving trend so far in the third quarter, driven in large part by a very successful graduation season, as well as kids’ birthday, including strength in balloon sales.”
“However, the environment remains highly uncertain and, as we head into the important third quarter and Halloween selling season, we remain disciplined in our approach to managing the business, continuing to prioritise preservation of our financial health and liquidity, while staying flexible so we can swiftly react to changing operating conditions. With focused execution of our strategic priorities, we are moving forward with our plan to stabilise the business and reposition Party City for enduring success.”