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An Early Night for Party City

ROCKAWAY, NJ-The discount party-supply chain reports a loss of $7.2 million in its third fiscal quarter.

By Dana Dubriwny | Updated on May 10, 2005

ROCKAWAY, NJ-In its third fiscal quarter ended April 2, discount party-supply franchiser Party City reported a net loss of $7.2 million, or 42 cents per share on a diluted basis. This compares with a net loss of $5.6 million, or 33 cents per diluted share, for the same time last year.

The results included a charge of $4.1 million related to the settlement of a California class action litigation relating to overtime wage and hour laws, but the company also attributed the loss to a decrease in net sales markdowns related to merchandise clearance activities, costs associated with the implementation of its distribution initiative and increases in certain corporate expenses.

“This management team clearly understands that we need to turn around the company’s performance,” Lisa Laube, chief merchandising officer, told investors during a Monday earnings call. Laube said the company plans on “blending the best of the old and the new,” which entails “reinstating ads for discounting party supplies, and resetting store configuration.”

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