Vail Resorts CEO Rob Katz began the company’s earnings call Sept. 29 by acknowledging that results from the past season were “below expectations.”
“We recognize that we are not yet delivering on the full growth potential that we expect from this business, in particular on revenue growth in both this past season and in our projected guidance for next year,” Katz said.
Katz said he is confident the company can return to higher growth in the coming years. The CEO said their immediate priority is “increasing guest visitation.”
As of Sept. 19, Epic Pass purchases for the upcoming winter are down 3% year-over-year. However, sales dollars are up 1%, thanks to a 7% pass price increase.
Despite the modest decline, Epic Pass sales are up approximately 20% for the upcoming season when compared to the 2020-2021 winter.
Katz said they expect total visitation at the company’s resorts to be down this coming season. He said Vail is reevaluating its pass products, along with considering resort-specific pricing changes.
Later in the call, a Morgan Stanley analyst asked Katz if the company expects any impacts at Park City Mountain following last season’s ski patrol strike.
The CEO said some guests who didn’t have a good experience may be concerned about returning to the resort, but he was adamant about moving past those challenges.
“I think we’re in a great spot to deliver a very high-level of experience all season long,” Katz said. “I think that’s something that’s going to come through, and we’re seeing evidence of that in the broader market bookings as well in Park City.”
Vail Resorts Chief Financial Officer Angela Korch highlighted several capital investments they are planning for Park City Mountain.
That includes two new 10-passenger gondolas at Canyons Village, replacing the Sunrise chairlift and the open-air Cabriolet. The Sunrise gondola is slated to open this upcoming winter.
Korch also said the company plans to resubmit permits to upgrade the Silverlode and Eagle lifts on the Mountain Village side of the resort. The goal is to have both upgrades installed by the 2027-2028 season, if the project is approved.
Vail previously applied to upgrade those lifts in 2022, but their permit was successfully appealed by four Park City residents.
The company took the matter to court, but lost twice, most recently at the Utah Court of Appeals earlier this year.
Year-to-date, Vail Resorts’ stock (MTN) price has declined over 15%.
