Rockaway, N.J., Party City Corp. lost $122,000, or 1? per share during the fiscal fourth quarter. The year before, the company saw a profit of $2.1 million, or 11? per share. Wall Street analysts had predicted earnings of 4? per share.
Total chain-wide sales of Party City fell 7.5% to $228.3 million. Last year, sales were $246.8 million. The company said the discrepancy is because last year there was one more week in the calculations. Sales decreased 7.7% to $111.3 million. Last year sales were $120.6 million.
Party City says its profits have declined because of charges, higher taxes and weaker sales. The company hopes to increase customer traffic and the amount of the average purchase to regain a profit.