Higher Helium Costs Hit Party City as Graduations Approach (1)

Rising helium costs are letting the air out of Party City Holdco Inc.’s results as supply-chain issues roil the global economy.

The company’s profits took a $2 million hit because it’s paying more to secure the gas as spring graduation approaches and celebrations tick up after two years of pandemic restrictions, Party City said during its earning call Monday. The firm said it diversified its supplier base after helium shortages impacted earnings in 2019 but is now coping with facilities that have shuttered or paused production.

Party City’s reliance on its balloon business means its helium problems squeeze it ...