Party City (NYSE:PRTY) reported earnings for its fiscal first quarter of 2020, which sent PRTY stock significantly higher in mid-day trading. That’s despite the company reporting adjusted losses per share of 28 cents on revenue of $414 million. Both of these results are below Wall Street’s estimates of loss of 19 cents per share and revenue of $445.17 million.
Here’s what else is worth noting from the most recent Party City earnings report:
- Adjusted per-share losses are worse than its adjusted EPS of 1 cent during the same time last year.
- Revenue for the quarter comes in 19.3% lower than the $513.12 million reported in fiscal Q1 2019.
- The reported operating loss of $611.37 million is 5,835.6% worse than the year-over-year loss of $10.3 million.
- The Party City earnings report also includes a net loss of $541.67 million.
- That’s a 1,688.3% wider net loss than the $30.29 million reported in the same period of the year prior.
Brad Weston, CEO of Party City, said this in the earnings report.
“We are pleased to have fully re-opened over 85% of our stores as of today. In addition, to support our ongoing transformation initiatives, we recently announced an agreement with certain of our bondholders to support a set of transactions that, if consummated, is expected to reduce the Company’s debt by over 25% and raise approximately $100 million in new capital.”
Party City doesn’t provide guidance for fiscal 2020, but it does reveal plans for the year. That includes closing 21 stores and opening two new stores. It has plans to open another 10 stores, but will likely hold off until 2021 to do so. It’s also expecting to invest $35 million to $40 million in capital expenditures this year.
PRTY stock was up 24% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.