Party City (Rockaway, N.J.) says it will remodel up to 125 stores – more than 15% of its fleet – as it reported a sales uptick for its fiscal first quarter.
The retailer’s sales inched ahead 1.4% for the quarter ending March 31, bringing total net sales to $443 million, according to a company press release. Its comparable store sales increased by 2.1% compared to a year earlier.
Due to rising helium costs, Party City will most likely be paying higher-than-usual prices to keep up with balloon demand in peak seasons like graduations – up to an estimated $7 million – the company told analysts during a Q1 conference call.
The party chain also updated its outlook for the remainder of 2022. It now anticipates net sales of $2.2 billion to $2.3 billion, or an increase of approximately 2.5% to 6% versus 2021.
“We expect supply chain and inflationary headwinds to continue, which is reflected in our updated outlook,” says CEO Brad Weston. “While we navigate this near-term turbulence in costs, we are being very thoughtful with our mitigating actions on the pricing front, along with delivering an improved customer experience. To that end, we remain focused on executing against our strategic priorities, which we are confident will even better position Party City to drive long term growth and shareholder value.”