Vail Resorts, a leading ski resort company, has announced a decline in revenue for its fiscal first quarter. The decrease in demand for activities at its North American resorts during the summer period has attributed to this setback.
For the three months ending on October 31, Vail Resorts reported a net loss of $175.5 million, or $4.60 per share. This compares to a loss of $137 million, or $3.40 per share, during the same period last year. Despite this, the loss per share was slightly better than what analysts had predicted, with FactSet forecasting losses per share of $4.59.
In terms of revenue, Vail Resorts experienced a 7.5% decline to $258.6 million. This fell short of analysts’ expectations, who had estimated revenue to reach $272.9 million.
However, there is some positive news for the company as pass product sales for the upcoming North America ski season have seen growth. Unit sales have increased by 4%, while sales dollars rose approximately 11% compared to the previous year.
Vail Resorts also highlighted the impact of normalized demand from its Australian operations following strong demand and favorable conditions in the prior year.
Looking ahead to the 2023/2024 North American and European ski season, Chief Executive Kirsten Lynch expressed satisfaction with the company’s base of committed guests. This base provides stability, particularly during times of economic uncertainty.
