The retailer has reported total net sales of $433 million for the first quarter of 2022, an increase of 2.1% year-on-year.
The financial results also saw a GAAP net loss of $26.9 million and an adjusted EBITDA of $4.6 million.
Brad Weston, ceo of Party City, said: “We are pleased to deliver another quarter of topline growth with a sales increase of 1.4% and brand comp sales growth of 2.1%, despite a difficult consumer backdrop with the Omicron variant earlier in the quarter.
“As expected, our bottom line results were impacted by elevated costs, including greater than anticipated freight and commodity cost pressures that ramped later in the quarter. Amidst this choppy macro environment, our teams are doing a good job executing against our strategic priorities of ongoing enhancements to customer engagement as well as digital, IT and supply chain, in support of our purpose to inspire joy and make it easy to create unforgettable memories.”
Total retail sales for the quarter increased 2.3% vs Q1 2021, primarily driven by strong comparable sales increases in seasonal categories. The total number of stores increased by eight.
Meanwhile, total gross profit margin decreased 380 basis points to 31.9% of net sales, and operating expenses totalled $158.1 million, or $9 million higher than Q1 2021.
Brad continued: “As we look to the remainder of 2022, we expect supply chain and inflationary headwinds to continue, which is reflected in our updated outlook. While we navigate this near-term turbulence in costs, we are being very thoughtful with our mitigating actions of the pricing front, along with delivering an improved customer experience.
“To that end, we remain focussed on executing against our strategic priorities, which we are confident will even better position Party City to drive long term growth and shareholder value.”
