Party City Holdco Inc. shares jumped 7.4% in premarket trade Monday, after the retailer posted a narrower-than-expected loss for the first quarter, sales that topped estimates and offered upbeat guidance for the current quarter. Party City said it had a net loss of $14.1 million, or 13 cents a share, in the quarter, narrower than the loss of $541.5 million, or $5.80 a share, posted in the year-earlier period. The company’s adjusted per-share loss came to 5 cents, well ahead of the 18 cents loss consensus of FactSet analysts. Sales rose to $426.8 million from $414.0 million a year ago, also ahead of the $405.0 million FactSet consensus. “Despite operating in a pandemic impacted environment with fewer in-person celebrations, brand comparable sales increased 0.4% versus 2019,” Chief Executive Brad Weston said in a statement. “While social gatherings were suppressed for a significant portion of the quarter, we were very encouraged by first quarter results and sales momentum which continued into April.” The company is now expecting second-quarter revenue of $475 million to $490 million, ahead of the FactSet consensus for $383.0 million. It expects brand same-store sales to climb 92% to 97%, compared with a FactSet consensus of 77.5%. Shares have gained 29% in the year to date, while the S&P 500 has gained 12.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
