Thu, Sep 26, 8:33 PM (94 days ago)
For the quarter ending September 30, 2023, Party City Holdco Inc. reported a net loss of $90.97 million, a significant decrease from a loss of $521.30 million during the same period in 2022. Total net sales fell by 18.9% to $407.15 million, primarily due to store closures and decreased consumer spending. The gross profit margin declined to 28.2%, reflecting higher costs and lower sales volume. Selling, general, and administrative expenses decreased by 14.2% to $153.17 million, driven by cost containment measures and a reduced store count. The company continues to navigate challenges from its Chapter 11 proceedings, with liabilities subject to compromise totaling $2.28 billion. Cash flows from operations improved, with net cash used in operating activities decreasing to $81 million from $286.4 million year-over-year. Following its emergence from bankruptcy on October 12, 2023, Party City restructured its debt, reducing long-term obligations significantly. The outlook remains cautious as the company addresses macroeconomic pressures and seeks to stabilize operations while enhancing customer engagement and supply chain capabilities.