Shares of Party City (NYSE: PRTY) have crashed today, down by 13% as of 12:10 p.m. EST, after the company reported preliminary fourth-quarter results. The figures came in significantly below expectations.
Revenue in the fourth quarter is estimated to be in the range of $645 million to $650 million, compared to the outlook issued in early November that called for sales of $675 million to $695 million. Analysts had been modeling for $687.1 million in revenue.
Brand comparable sales are forecast to decline in the mid-single-digit range, which is worse than Party City’s guidance of “flat to down a low single digit percentage.” Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be $75 million to $80 million, down from the previous forecast of $80 million to $90 million. The company attributed the shortfall to ongoing impacts from the pandemic.