Shares of Party City Holdco (NYSE: PRTY) plummeted more than 20% in pre-market trading on Tuesday as the party goods and Halloween specialty retailer reported disappointing Q3 results. Shares of the retailer have already lost more than 80% in value in the past year.
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The retailer’s revenues declined 1.6% year-over-year in Q3 to $502.2 million. Adjusted loss came in at $1.39 wider than analysts’ estimates of a loss of $0.10 per share.
Brad Weston, Party City’s CEO stated, “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. We are focused on $30 million of savings, with work already underway to deliver this target in 2023, including a corporate workforce reduction of 19% through a combination of position eliminations and not backfilling a significant number of open positions.”
As a result, the company also slashed its FY22 revenue outlook to between $2.14 billion and $2.19 billion from its prior guidance in the range of $2.15 billion to $2.23 billion.