Party City Holdco ( NYSE: PRTY ) shares plunged over 20% on Tuesday after posting a quarterly loss and reining in full-year guidance.
The New York-based company reported an adjusted loss of $1.39 per share for the third quarter, as compared to a two cent gain in Q3 2021, as revenue fell 1.5% from the prior year to $502.19M. Additionally, comparable sales fell 3.2% as compared to a 7.5% gain in the prior year.
The company now sees revenue in the range of $2.14B to $2.19B, down from $2.15B to $2.23B projected in the previous outlook.
“While our overall enterprise-wide Halloween sales results were up year over year, they came in at the lower end of our expectations as macro pressures impacted customers’ ability and willingness to increase spend on Halloween celebrations,” CEO Brad Weston said. “Looking ahead, we anticipate the current macro backdrop to persist and are taking action to best position the business in this environment and for the longer term.”
These actions are slated to drive $30M in cost savings. One major move to trim expenses is a 19% cut to overall headcount into the fourth quarter. Shares of Party City ( PRTY ) fell 21.59% in premarket hours.
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Party City stock plummets after cutting full-year forecasts