- Party City is the dominant wholesale, manufacturing, and retail player in the party space leading to a high quality business.
- Our 98% correlated credit card panel has inflected positively since the Super Bowl.
- Secular trends are in Party City's favor as the world reopens and pent-up demand for social gatherings leads to a huge increase in parties and events.
- Party City is viewed as an overlevered retailer who is facing increasing competition from Amazon when it is resistant to Amazon due to an incredibly unique retail experience.
- The stock is trading at a 75% discount to its pre-pandemic levels despite average revenue per store being up 20% vs. pre-pandemic.
For further details see:
Party City - Undervalued 2022 Reopening Play