Party City Holdco Inc. (NYSE: PRTY), leading party goods and Halloween specialty retailer specializing to commercialize costumes, accessories, and other novelty goods, announced financial results for the quarter completed on March 31, 2021.
At last check-in premarket trading, shares of Party City Holdco Inc. (PRTY) increased by 8.04% at $8.6. PRTY stock closed last session at $7.96, declining -0.38% or -$0.03. Shares of the company fluctuated within a range of $7.85 and $8.3602 throughout the day. PRTY stock has gained 13.71% in the last five days, while it has added 35.14% in the last month.
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First Quarter 2021 Financial Results
Total revenue was $426.8 million, representing an increment of 3.1% on a reported basis and 2.7% on a constant currency basis, in comparison to the same quarter of the previous year. Total Retail sales climbed 10.0% on a reported and constant currency basis directed due to 49.3% comparable sales surge in core segments compared to the 13 weeks ended April 4, 2020, partly offset by the divestiture of the global retail business and timing of New Year’s Eve.
The total amount of corporate Party City stores was 751 as of March 31, 2021, versus 757 in the previous year period. Brand comparable sales climbed 35.9% in the first quarter in comparison to the same quarter of the previous year and surged 0.4% versus the 13 weeks ended on April 6, 2019.
Net third-party Wholesale revenues declined 15.8% on a reported basis or 16.8% in constant currency, primarily due to the divestiture of a considerable portion of the global operations. Interest expense was $17.2 million in the first quarter of 2021, versus $25.1 million during the same quarter of the previous year primarily due to lower amounts of debt outstanding.
Total gross profit margin had an increment of 735 basis points to 35.7% of net sales. Excluding specific items providing no indication of core operating performance, gross profit margin saw an improvement of 200 basis points to 36.0% of net sales primarily due to lucrative product mix and reduced retail sale promotions, partly initiated by rising costs for helium and delivery service.
As the first quarter of 2021 was completed, PRTY had $83.8 million in cash and almost $129.3 million of available capital under the ABL Facility, with total liquidity of $213.1 million.
Conclusion
PRTY offered a better-than-expected outlook for the current quarter and anticipates sales and profits to grow for the full year due to rising number of total sales combined with reduced operating expenses. Furthermore, PRTY expected outlook to generate$475 to $490 million of total revenue in the second quarter has peaked investor interest, with PRTY stock rising immensely.
