The holiday retailer announced it will achieve this goal by laying off employees and not filling open positions. This follows its earnings for the third quarter of 2022, which saw it miss estimates as inflation weighed on its report.
Inflation is resulting in consumers spending less money, and Party City is among the companies strongly affected by this. That holds especially true, as its goods are more of a luxury and aren’t required to survive.
Party City Layoffs Make Sense
That earnings report, as well as the Party City layoffs, have analysts taking a tough stance on PRTY stock. Analysts at Telsey Advisory Group said the following in a statement obtained by RetailDive:
“Uncertainty about the level of demand, more promotions at discounters that can result in lower traffic to Party City stores, and the ability to manage rising costs keep us concerned.”
As far as trading goes today, some 3.5 million shares of PRTY stock have changed hands as of this writing. That’s low compared to its daily average trading volume of about 7.7 million shares.
PRTY stock is down 7.8% and has fallen 86.1% since the start of the year.
Investors looking for more of the latest stock market news are in the right place!
InvestorPlace has all of the hottest stock market news traders need to know about on Monday! Among that is what has shares of Bed Bath & Beyond (NASDAQ:BBBY), Opiant Pharmaceuticals (NASDAQ:OPNT) and Monday.com (NASDAQ:MNDY) stock moving today. You can find out all about these topics at the following links!
More Monday Stock Market News
- Dilution Alert: BBBY Stock Falls as Bed Bath & Beyond Issues More Shares
- Why Is Opiant Pharma (OPNT) Stock Up 116% Today?
- Monday.com (MNDY) Stock Pops on Strong Q3 Earnings
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.