Vail Resorts held its Q1 Earnings call last night, and the numbers were flowing like champagne at an over-priced après ski party…
Vail is clearly not immune to the effects of COVID-19, and reported a 50% decline in revenue compared to this time last year.
Despite a decrease in lodging, food, and entertainment- Vail sold 1.4 million Epic Passes, a 20% increase. Vail CEO Rob Katz rejoiced in the fact that skier interest appears to be higher than ever.
Katz also disclosed that Vail Resorts still has $614M in cash in the bank… holy cow. Despite this absurd amount of financial security, investors appear to be dumping Vail stock at a fairly high rate. Vail’s stock traded as MTN, is down 4% since the markets opened today.
Yikes, not a great week for Vail Resorts.
The company is also listed as the defendant in what could turn out to be a class-action lawsuit for violating labor laws. The company is being sued for $100M.
The full transcript of the earnings call can be found here.
What do you think about this news from Vail Resorts?