US retailer, Party City, has reported its fourth quarter and full year results, showing an increase in sales of 17.3% in 2021 versus the prior year.
Fourth quarter net sales were $698.3 million, an increase of 7.7% year on year. Comparable sales for the quarter increased by 17.8% versus the previous year, driven by strength in core categories. Meanwhile the company reported a GAAP new loss of $19.5 million and an adjusted net income of $46.7 million.
For the full year 2021, total net sales were $2,171.1 million, an increase of 17.3% from 2020. Total gross profit margin increased 940 basis points to 35.4% of net sales. The reported GAAP net loss was $6.5 million or loss of $0.06 per share.
Brad Weston, chief executive officer of Party City, commented: “We are pleased with our fourth quarter and full year results that were in line with our expectations as we closed out another successful year.
“To that end, 2021 was an important year of transformation for the company as we advanced the fundamental building blocks of our strategy across product innovation, in-store experience, being celebration occasion obsessed and focusing on our North American vertical model, which have yielded important benefits.
“We are so proud of the entire PCHI team and all that they accomplished across our manufacturing operations, stores and supply chain, while navigating a truly uncertain and dynamic environment.”
The total number of corporate Party City stores was 759 on December 31st, 2021, compared to 746 a year ago.
Looking forward to the coming year, Brad added: “In 2022 we will build on our progress with a focus on customer engagement enhancements, and investments in IT, supply chain and infrastructure.
“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. We are confident these efforts, combined with the capabilities that we have put in place over the course of the last two years of the pandemic, will serve us well in 2022 and beyond.”
