Q2 sales dip for Party City

The US retailer reported a decline in total net sales of 1.5% year-on-year.

Total net sales for the period were $527.4 million, while total retail sales also decreased by 4.6% year-on-year, primarily driven by lower sales of core product in everyday categories, as well as the current inflationary environment.

Total gross profit margin decreased 680 basis points to 33.7% of net sales, driven primarily by higher input costs from supply chain, raw materials, sourced merchandise, helium and labour.

Adjusted net income was $11.5 million, or $0.10 per diluted share, compared to $24.1 million or $0.29 per share in Q2 2021.

Brad Weston, ceo of Party City, commented: “Our second quarter topline results were largely as expected as we lapped a strong Q2 last year while cost headwinds, which are predominantly transitory in nature, pressured profitability. We are seeing benefits from the transformation work we have accomplished over the last two years, which is evidenced by our strong sales results compared to pre-pandemic levels.”

He added: “For the back half of the year, we continue to expect the supply chain volatility and inflationary pressures to persist and as a result, are revising our full year outlook. Given the continued broader macro pressures, we continue to operate the business with discipline from an expense and capital standpoint. Importantly, all of the progress we’ve made on our strategic initiatives is strengthening our market position, which will serve us well over the near and long-term.”

Prog Halloween 23 (2)
The annual issue of Progressive Halloween, with all the frightening goings-on of the party business in the lead up to 31 October, is available to read online now....
Jelle (2)
Jelle van der Zwet, co-founder of Opposuits, chats about surviving Covid, travel and copying ideas....
Progressive Preschool featured image (10)
Ginger Ray's new Pumpkin Spice-inspired decoration collection, and Deadly Soiree range are available now. ...
BLE (1)
The RMT this week announced a London Underground strike on October 4 and October 6. This is in addition to the UK national rail strike already announced to take place on October 4 only....
Rubies Monster High (4)
Well-known for its extensive licensed offering, Rubies also has a wider range of themed costumes available for Halloween....
Spirit Halloween (1)
Spirit Halloween and Butterfinger have teamed up ahead of Halloween....
Get the latest news sent to your inbox
Subscribe to our daily newsletter