Party City (PRTY) reported earnings on Thur 7 Nov 19 (b/o)

** charts after earnings **

 

 

 

 

 

 

 

Party City misses by $0.29, misses on revs; guides FY19 EPS below consensus, revs below consensus

Reports Q3 (Sep) loss of $0.28 per share, $0.29 worse than the S&P Capital IQ Consensus of $0.01; revenues fell 2.3% year/year to $540.2 mln vs the $551.73 mln S&P Capital IQ Consensus.

Gross profit margin decreased 590 basis points to 30.6% primarily due to the overall impact of the ongoing helium shortage, including increased cost (180 bps); inventory markdowns and provisions recorded in conjunction with the company's previously discussed store optimization program (160 bps); and higher freight costs associated with product imported during 2H18 as the China tariffs caused temporary operational disruptions (130 bps.)

Brand comparable sales decreased 2.6% during the third quarter due to approximately 210 basis points of headwinds from the helium shortage.

North American e-commerce sales increased by 11.6% on a reported basis and 14.9% including Buy Online Pickup In Store.

Co issues downside guidance for FY19, sees EPS of $0.84-$0.91 vs. $1.27 S&P Capital IQ Consensus; sees FY19 revs of $2.35-$2.38 bln vs. $2.41 bln S&P Capital IQ Consensus.