The blows keep coming for the biggest name in the ski biz.
Vail Resorts claims it lost about $53 million in the second quarter, which covers Thanksgiving and Christmas. Skier visits were down 13% in North America. The company blames it almost entirely on measly snow in the Rocky Mountains, where snowpack has been setting new record lows weekly since early January.
“This has been the most challenging winter across the Rockies that we have ever experienced with the lowest snowfall levels in more than 30 years for our Colorado and Utah resorts, combined with warmer temperatures, resulting in reduced terrain throughout the quarter and into February,” CEO Rob Katz said in a second-quarter press release.
Dining, ski school and rentals suffered, although Katz says it was not as bad as it could have been. Pre-season Epic Pass sales stopped some of the financial bleeding.
“We are pleased with the strength and stability shown by our operating model, as we reported only modest declines in lift revenue in what many would consider a worst-case weather scenario,” Katz continued.
The company also slashed its revenue prediction for the year by $86 million, suggesting it does not expect conditions to improve any time soon.
Data from Mother Nature is just as grisly. Snowpack on the Colorado River Headwaters, home to Breckenridge and Vail Mountain, is the lowest in recorded history for a eighth consecutive week. An early-March snowstorm helped a little – Vail claims a 52-inch base today after 17 inches in the past week – but terrain is still limited. Vail is 86% open today. Three of seven bowls remain closed. Breck is 84% open. At this time last year both were almost completely open.
All this means slimmer paydays for Vail investors. Company shares are trading at around $132 this morning, down 18.5% from a pre-holiday high of $162.