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Party City Holdco (Party City Holdco) Gross Margin % : 31.55% (As of Sep. 2022)


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What is Party City Holdco Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Party City Holdco's Gross Profit for the three months ended in Sep. 2022 was $158 Mil. Party City Holdco's Revenue for the three months ended in Sep. 2022 was $502 Mil. Therefore, Party City Holdco's Gross Margin % for the quarter that ended in Sep. 2022 was 31.55%.


The historical rank and industry rank for Party City Holdco's Gross Margin % or its related term are showing as below:


PRTYQ's Gross Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 36.74
* Ranked among companies with meaningful Gross Margin % only.

Party City Holdco had a gross margin of 31.55% for the quarter that ended in Sep. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Party City Holdco was 0.00% per year.


Party City Holdco Gross Margin % Historical Data

The historical data trend for Party City Holdco's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Party City Holdco Gross Margin % Chart

Party City Holdco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.03 22.78 17.36 5.04 15.45

Party City Holdco Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.01 -31.17 31.87 33.74 31.55

Competitive Comparison of Party City Holdco's Gross Margin %

For the Specialty Retail subindustry, Party City Holdco's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Party City Holdco's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Party City Holdco's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Party City Holdco's Gross Margin % falls into.



Party City Holdco Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Party City Holdco's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=335.5 / 2171.06
=(Revenue - Cost of Goods Sold) / Revenue
=(2171.06 - 1835.535) / 2171.06
=15.45 %

Party City Holdco's Gross Margin for the quarter that ended in Sep. 2022 is calculated as


Gross Margin % (Q: Sep. 2022 )=Gross Profit (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=158.4 / 502.191
=(Revenue - Cost of Goods Sold) / Revenue
=(502.191 - 343.743) / 502.191
=31.55 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Party City Holdco  (OTCPK:PRTYQ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Party City Holdco had a gross margin of 31.55% for the quarter that ended in Sep. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Party City Holdco Gross Margin % Related Terms

Thank you for viewing the detailed overview of Party City Holdco's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Party City Holdco (Party City Holdco) Business Description

Traded in Other Exchanges
N/A
Address
80 Grasslands Road, Elmsford, NY, USA, 10523
Party City Holdco Inc is a party goods retailer in North America that operates owned and franchised locations in the us, Canada, and Puerto Rico. Party City also sells internationally in countries like the UK, France, Germany, and Australia, among others. The company has two primary reporting segments: retail and wholesale. The retail operations sell through Anagram, Amscan, Designware, Costumes USA, and other party suppliers, such as Party City, Halloween City, and PartyCity.com. The wholesale segment sells party goods such as paper and plastic tableware, accessories and novelties, balloons, stationery, and gift items for all occasions. These products are sold by franchise stores, mass merchants, independent card and gift shops, dollar stores, and other retailers and global distributors.
Executives
Clifford Sosin 10 percent owner 8 WRIGHT STREET, 1ST FL, WESTPORT CT 06880
John Capela officer: See Remarks 779 HIGHLAND AVENUE, PARAMUS NJ 07652
Peter Royer Smith officer: Chief Operations Officer 3438 PEACHTREE ROAD NE, SUITE 1800, ATLANTA GA 30326
De Mesa Graziano Cheryl officer: Chief Accounting Officer 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Steven J Collins director 29 VINTON STREET, #5, BOSTON MA 02127
William S. Creekmuir director SIX CONCOURSE PARKWAY, SUITE 3300-A, ATLANTA GA 30328
John Frascotti director C/O HASBRO, INC. 1011 NEWPORT AVENUE, PAWTUCKET RI 02862
Shroff Michelle Millstone director C/O PARTY CITY HOLDCO INC., 80 GRASSLANDS ROAD, ELMSFORD NY 10523
James M Harrison director GOLDMAN, SACHS & CO., 85 BROAD ST, NEW YORK NY 10004
Reginald Rasch officer: See Remarks 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sean Thompson officer: See Remarks 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Sarah Dodds-brown director 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Jennifer Fleiss director 80 GRASSLANDS ROAD, ELMSFORD NY 10523
Joel Alsfine director 2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Norman S Matthews director 650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022

Party City Holdco (Party City Holdco) Headlines

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