Party City on Tuesday announced earnings and revenue that topped expectations, and said it would launch an online marketplace for party services.
The party supplies retailer and wholesaler reported a loss of $4.7 million in its first quarter, which included a $9.2 million one-time charges associated with company restructuring, and primarily represents related severance charges. Earnings, adjusted for one-time gains and costs, were 5 cents per share. The results surpassed Wall Street expectations. Total revenue rose 4.2% to $477.00 million in the quarter, ended March 31.
“2017 is off to a solid start with first quarter results that were in line with our expectations,” said James M. Harrison, CEO. “A compelling assortment, good in-store execution and strong holiday performance were all positive contributors in our retail business. We made significant progress on the acquisition front, strengthening our vertical model, expanding our company-owned footprint and increasing our global presence. We are building on our successful track record of making highly accretive acquisitions, and we have a robust pipeline of further opportunities.”
Party City said it has entered into an agreement to design and launch an online, easy-to-use digital marketplace for party-related services. The site would connect suppliers and consumers, and allowing a shopper to select, schedule and pay for party services, including entertainment, activities, food and decorations, from various screened vendors, according to the company.
Party City’s retail operations include over 900 specialty retail party supply stores (including approximately 150 franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com.