Party City Posts 4Q Profit Loss
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.
Wal-Mart Sells $2.5 Billion in 30-Year Bonds
New York City, Wal-Mart Stores Inc. sold $1.5 billion in 30-year bonds on Wednesday, according to JP Morgan. Initially, Wal-Mart planned to sell $2.0 billion. Before the sale, demand for the bonds was expected to be high since 30-year corporate bonds are relatively rare. This sale is Wal-Mart’s second offering since Aug. 8, when it issued $800 million of five-year notes, according to Bloomberg data.
Coach Profits Bigger Than Expected
Chicago, Coach Inc. reported that its quarterly profit would likely beat expectations. The company said strong sales of its handbags for the fall season drove the increase. Coach said first-quarter earnings would be at least 25? per share on sales of at least $445 million. Analysts expected a profit of 24? per share.
Three top Coach executives signed extensions to stay with the company through August 2011: chairman and chief executive Lew Frankfort, executive creative director Reed Krakoff and COO Keith Monda.