Leading US party chain retailer Party City has seen its shares jump by 12% following the news that its Q1 earnings have remained broadly in line with analyst estimates.
Despite reporting a net loss of $26.6 million for the quarter ended 31 March 2019, (compared to earnings of $4.1 million in the previous year), revenues rose to $513 million (from $508 million in the prior-year quarter), narrowly missing the consensus estimate of $520 million.
The chain – which recently announced the closure of 45 stores across the US in 2019 – has also revealed that it has signed a letter of agreement for a new source of helium, which will provide additional quantities this summer and for at least the next 30 months.
“We believe this new source should substantially eliminate the shortfall we are experiencing at current allocation rates and improve our ability to return to a normal level of latex and metallic balloon sales,” said ceo James Harrison.
The US retail group has also recently announced its plans to extend into the European market.