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Vail Resorts (MTN) Reports Y/Y Decline in Ski Season Metrics

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Vail Resorts, Inc. (MTN - Free Report) recently announced its interim period data for its 2020/21 North American ski season through Jan 3, 2021. Following the announcement, shares of the company declined 3.7% during trading hours on Jan 15.

Ski Season Metrics

The company’s North American ski season-to-date results were negatively impacted by COVID-19 related capacity limitations and dismal snowfall levels at Colorado, Utah and Tahoe resorts.

Notably, season-to-date (through Jan 3, 2021) total skier visits fell 16.6% compared with the prior year season-to-date period (Jan 5, 2020). Lift ticket revenues fell 20.9% year over year. Meanwhile, ski school revenues plunged 52.6% year over year and dining revenues plunged 66.2% compared with the prior-year period’s levels. Retail revenues (or rental revenue) for North American resort and ski area store locations fell 39.2% year over year.

Meanwhile, Rob Katz, Chief Executive Officer, Vail Resorts stated, “Given the uncertainty COVID-19 has created for travel demand, operating restrictions and the ultimate visitation to and spending at our resorts, the Company will not be providing full year guidance for fiscal 2021 at this time.”

Nonetheless, the company stated that it is optimistic about the rest of the season, subject to normalcy in Colorado, Utah and Tahoe along with relaxations in capacity restrictions.

Price Performance

Coming to price performance, shares of Vail Resorts have gained 43.6% in the past six-month period compared with the industry’s 37.4% growth. Notably, the company is benefiting from its offerings such as Epic Pass, Epic Local Pass, Epic Day Pass and Epic Coverage products. This along with renewal of passes owing to credit deadlines clearly benefited the company’s performance. Also, continuous efforts on digital marketing and media advertising are likely to boost traffic and sales in the coming periods.

Zacks Rank & Key Picks

Vail Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Consumer Discretionary sector include Monarch Casino & Resort, Inc. (MCRI - Free Report) , Cedar Fair, L.P. (FUN - Free Report) and Lindblad Expeditions Holdings, Inc. (LIND - Free Report) . Monarch Casino sports a Zacks Rank #1, while Cedar and Lindblad Expeditions carry a Zacks Rank #2 (Buy).

Monarch Casino has a trailing four-quarter earnings surprise of 44.8%, on average.

Earnings for Cedar and Lindblad Expeditions in 2021 are expected to surge 77.1% and 54.3%, respectively.

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