Vail Resorts’ pass sales for the approaching ski season dipped in recent months as last winter’s brutal conditions continue to sting.
As of Sept. 18, the company’s signature Epic Pass sales were 12% lower than at the same time last year, Broomfield-based Vail said in a quarterly earnings report. Sales were down 10% from the prior year the last time Vail updated investors in June.
“Results through the Labor Day sales deadline were generally consistent with trends experienced during the spring selling period … as demand across the industry continued to be impacted by the effects of last season’s historically challenging conditions,” the company said in its quarterly earnings release.
Basically, the no-show snow has been bad for business.
The bad snow conditions in the western U.S. last winter have been a major drag on the resort giant’s financial results. On top of that, the winter in Australia was disappointing, too, with cumulative snowfall 57% below the 10-year average.
For the fiscal year, Vail’s profits of $147.5 million were nearly 50% lower than the prior year. Skier visits were down 13.4%.
Hoping for good snow
The record-setting El Niño weather pattern has many hoping for blockbuster snow this winter. But Vail is baking in a relatively conservative forecast when it comes to visitation to its resorts in North America.
“We expect visitation will not fully return to fiscal 2025 levels in the U.S.,” Vail CFO Angela Korch said during a conference call for investors. “Given the current pass sale trends, we are not expecting an overall improvement during the rest of the selling season.”
Instead, according to Korch, Vail executives are counting on people buying individual lift tickets to shore up its bottom line.
“We view the current environment as being driven more by delayed purchasing behavior than a structural change in demand,” Korch said.
Vail’s stock has taken a beating in recent years as investors sour on its growth prospects. Bad press, long lift lines and sagging season pass sales were dragging down the company’s reputation even before last season’s snow drought.
Board of directors potentially in flux
Vail shareholder Oasis Management, a Hong Kong hedge fund that specializes in buying stakes in troubled businesses and pushing for change, plans to nominate a slate of candidates to Vail’s board of directors at the company’s annual meeting. The nominees include ski legend Pikabo Street.
In a regulatory filing, Oasis said the company’s share price is too low. The new board members would work with management to sharpen Vail’s focus on guest experience, pricing and marketing, among other things.
Vail isn’t obligated to appoint the board nominations. Such moves by shareholders can turn into high stakes battles over a company’s future direction.
Vail hasn’t yet set a date for its annual shareholder meeting.
