8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 8, 2004

PARTY CITY CORPORATION

(Exact name of Registrant as Specified in Chapter)

Delaware	0-27826	22-3033692
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

400 Commons Way, Rockaway, NJ	07866
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (973) 983-0888

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

     (c) Exhibits.

          99.1 Press Release issued by Party City Corporation (the “Company”), dated April 8, 2004, regarding third quarter sales results.

Item 12. Results of Operations and Financial Condition.

          On April 8, 2004, the Company announced its sales results for the third fiscal quarter ended March 27, 2004.

          A copy of the press release issued by the Company announcing the foregoing is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

          The information in this Report, including the exhibit attached hereto, is furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references this Form 8-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 9, 2004	PARTY CITY CORPORATION
	By:	/s/ Linda M. Siluk
	Name:	Linda M. Siluk
	Title:	Chief Financial Officer

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release issued by Party City Corporation, dated April 8, 2004, regarding third quarter sales results.

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EX-99.1

[Letterhead of Party City]

NEWS RELEASE

	Contact:	Linda M. Siluk
		Chief Financial Officer
		(973) 983-0888 Ext. 492
FOR IMMEDIATE RELEASE	Investors:	Edward Nebb
		Comm-Counselors, LLC
		(212) 367-6848

PARTY CITY CORPORATION ANNOUNCES THIRD QUARTER SALES RESULTS

— Dates Announced for Third Quarter Earnings Release and Investor/Analyst Meeting —

     Rockaway, New Jersey, April 8, 2004 – Party City Corporation (Nasdaq: PCTY), America’s largest party goods chain, today announced its sales for the third fiscal quarter ended March 27, 2004.

     Quarterly results

     Net sales for Company-owned stores increased 1.9% to $97.7 million from $95.8 million in the third quarter of last year. Same-store sales for the quarter decreased 0.9% for Company-owned stores and increased 1.3% for franchise stores. Total chain-wide net sales (which include aggregate sales for the collective group of Company-owned and franchise stores) increased 3.2% to $203.1 million from $196.8 million in the comparable period last year.

     Nine Month Results

     Net sales for Company-owned stores increased 7.7% to $375.6 million from $348.6 million in the first nine months of last year. Same-store sales for the nine-month period increased 2.5% for Company-owned stores and 4.5% for franchise stores. Total chain-wide net sales increased 7.8% to $776.0 million from $719.9 million in the comparable period last year.

     Management Comment

     Nancy Pedot, Chief Executive Officer of Party City Corporation, stated, “Our sales performance in the third quarter of Fiscal 2004 was consistent with our expectations. The results reflected, among other things, our decision to shift some advertising from March into April, as well as severe weather during January. We are continuing our focus on strategies to enhance Party City’s merchandise offerings, quality/value proposition, customer shopping experience and business processes, and remain confident that these strategies will lead to greater shareholder value.”

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     Ms. Pedot continued, “We experienced comparable store growth across our seasonal business, including New Year’s, Valentine’s Day, and St. Patrick’s Day. This was partly due to the timing of the holidays, but also reflected very strong customer receptivity to our new Luau assortment. With six stores joining the same store sales group this quarter, same store sales increased 0.8% in our western region, 0.3% in the eastern region and decreased 3.4% in the central region.”

     Third Quarter Earnings Release/Conference Call

     Party City also announced that the Company’s conference call to discuss third quarter results will be broadcast live over the Internet on Friday, May 7, 2004 at 10:00 a.m. Eastern Time. The broadcast can be accessed by visiting http://www.partycity.com. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on http://www.partycity.com until May 21, 2004.

     Investor/Analyst Meeting

     The Company further announced that it will hold a meeting for investors and analysts on Tuesday, May 11, 2004, from 8:00 a.m. to 11:00 a.m. Eastern Time. Further information regarding the meeting location and Internet broadcast will be available shortly.

     Other Information

	Quarter ended						Nine months ended
	March 27, 2004			March 29, 2003			March 27, 2004			March 29, 2003
Company-owned stores:
Same-store sales		(0.9	%)		(2.4	%)		2.5	%		1.1	%
Number of Company- owned stores, end of period		249			241			249			241
Franchise stores:
Same-store sales		1.3	%		1.7	%		4.5	%		3.3	%
Number of franchise stores, end of period		254			241			254			241

     Party City Corporation is America’s largest party goods chain and currently operates 249 Company-owned stores and 254 franchise stores. To learn more about the Company, visit the Company’s web site at http://www.partycity.com.

     Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, among other things, the competitive environment in the party goods industry in general and in the Company’s specific market areas, inflation, changes in costs of goods and services and economic conditions in general. Those and other risks are more fully described in the Company’s filings with the Securities and Exchange Commission.

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