Party City stock falls 51% after wider-than-expected loss and sales miss

Party City Holdco Inc.
PRTY,
-61.41%
shares plunged 51.6% in early Monday trading after it reported a wider-than-expected first-quarter loss and a sales miss. Shares were down double digits during premarket hours. Net loss totaled $26.9 million, or 24 cents per share, after a loss of $14.1 million, or 13 cents per share. Adjusted loss of 22 cents per share was wider than the FactSet consensus for a 12-cents-per-share loss. Sales of $433.0 million were up from $426.8 million and also missed the FactSet consensus of $435.8 million. “As expected, our bottom line results were impacted by elevated costs, including greater than anticipated freight and commodity cost pressures that ramped later in the quarter,” said Chief Executive Brad Weston in a statement. “As we look to the remainder of 2022, we expect supply chain and inflationary headwinds to continue, which is reflected in our updated outlook.” Party City is guiding for sales of $2.225 billion to $2.300 billion. The FactSet consensus is for sales of $2.300 billion. Party City stock is down 73.4% for the year to date.