Read How Party City Holdco Fared In Q2

Party City Holdco Inc PRTY reported a second-quarter FY22 sales decline of 1.5% to $527.45 million, missing the consensus of $529.40 million.
Brand comparable sales decreased 5.6% versus last year. Total retail sales fell 4.6%.
The gross profit margin decreased 680 basis points Y/Y to 33.7%. The operating income for the quarter was $10.67 million versus $61.83 million a year ago.
Adjusted EPS of $0.10 beat the consensus of $0.06.
Adjusted EBITDA was $45.8 million versus $85.8 million the previous year, with the margin contracting 730 basis points to 8.7%.
The total number of corporate Party City stores was 756 as of June 30, 2022, versus 749 last year.
The company held $39.2 million in cash and equivalents as of June 30, 2022.
"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,” said CEO Brad Weston.
Outlook: Party City sees FY22 sales of $2.15 billion - $2.225 billion (prior view of $2.225 billion - $2.30 billion).
It expects brand comp sales to decline from -4% to -1% (prior view -1% to 2%).
Adjusted EBITDA of $170 million - $200 million (prior view $235 million - $265 million)
Price Action: PRTY shares are trading higher by 10.79% at $1.45 on the last check Monday.