Shares of party goods retailer Party City Holdco (NYSE:PRTY) have skyrocketed more than 500% in price over the past year as the company’s sales bounced back sharply from a pandemic-driven slump with the gradual resumption of social gatherings. However, given that the company still faces financial and operational challenges, will its shares be able to maintain their momentum? Read on.Elmsford, N.Y.-based Party City Holdco Inc . (PRTY) is a party goods manufacturer that operates through retail and wholesale segments. Its shares have jumped 66.9% in price over the past three months, and 503.9% over the past year. PRTY’s stellar price performance can be attributed to a massive rebound in sales with celebrations and social festivities gradually returning to their pre-pandemic level.
PRTY has gained 247% over the past nine months and 51.2% year-to-date. The stock is currently trading 15.9% below its 52-week high of $11.06, which it hit on June 9.
While PRTY’s strong sales growth across all core categories bodes well for the stock, its store closures could be headwind. In addition, the company’s high debt levels could make investors uncomfortable. Although the stock has been maintaining strong momentum, the company’s divestiture of a significant portion of its international retail operations could be a concern.