Lower profit forecast, less snowfall send Vail Resorts stock on a downhill run

By Bill Peters

Ski-resort operator faces decrease in snowfall and a cool-down from pandemic-era demand

Shares of Vail Resorts Inc. dropped in extended trading Thursday after the ski-resort operator cut its full-year profit outlook and offered up figures that pointed to slowing demand for the key upcoming ski season.

The company, which runs dozens of ski resorts in the U.S., Canada, Australia and Europe, issued those financials amid a steep drop in snowfall and a cool-down from a pandemic-era surge in outdoor activity.

Shares of Vail (MTN) fell 6.7% after hours on Thursday.

Vail said it expected net income of $224 million to $256 million for its fiscal year, which ends on July 31. That forecast was down from an outlook of $270 million to $325 million given in March. The company on Thursday attributed the difference to its purchase of Crans-Montana Mountain Resort in Switzerland.

Vail said ski-pass sales through May 28 for the 2024-'25 North American ski season fell around 5% year over year when measured by the amount of passes sold. Measured by dollars, those sales rose around 1%, boosted by price increases.

"The majority of our pass-selling season is ahead of us, and we believe the full-year pass unit and sales dollar trends will be relatively stable with the spring results," Chief Executive Kirsten Lynch said in a statement.

For its fiscal third quarter, Vail reported net income of $381.4 million, or $9.54 a share, compared with $343.2 million, or $8.18 a share, in the same quarter last year. Sales rose 3.6% year over year to $1.28 billion. Both the sales and earnings per share results were below expectations.

Less frequent snowfall, and less predictable weather, have led to less frequent visits from skiiers. Vail has invested in new lifts and improved snowmaking systems, and leaned on its pass program and ancillary purchases like ski instructions and dining.

Lynch said Thursday that trends during the third quarter had improved through March and April, particularly at its resorts in western North America. But she said lift-ticket visits hadn't returned to typical spring-season patterns, particularly at its Whistler Blackcomb mountain resort in British Columbia.

-Bill Peters

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06-06-24 1817ET

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