Vail beats earnings estimates as CEO calls for more diversity in skiing

BROOMFIELD — Vail Resorts Inc. (NYSE: MTN), which has seen resorts close up shop and revenues shrivel in the wake of the COVID-19 outbreak, got a reprieve from its tough luck streak this week as the company’s third quarter earnings beat Wall Street predictions.

The firm posted quarterly earnings of $3.74 per share on $694 million in revenue. Zacks Consensus Estimate for the quarter was $2.67 per share.

 “Our results for the quarter and for the full 2019/2020 North American ski season were significantly impacted by COVID-19 and the resulting closure of our North American mountain resorts beginning March 15, 2020, for the safety of our guests, employees and resort communities,” Vail CEO Rob Katz said. “In addition, even before the closure and during the first two weeks of March, we experienced a negative change in performance that we believe was due to the impact of COVID-19 on traveler behavior.”

Vail predicted the virus could ultimately cost the firm $200 million in revenue this year. “Relative to these expectations, our results were favorable by approximately $40 million, primarily driven by cost actions implemented in April 2020,” according to the firm’s earnings report. 

In a separate memo issued this week, Katz addressed the George Floyd killing in Minneapolis and systemic racism, calling for the ski industry to work harder on inclusion and diversity of both workforces and customers.

“As much as I have been saddened seeing these acts of racism across our country, I am also confronted by the fact that our company and our sport are overwhelmingly white, with incredibly low representation from people of color,” Katz wrote. 

He added: “While I’m sure most everyone in our industry believes they are tolerant and welcoming, we need to acknowledge that there are parts of the culture of our sport that are clearly not inviting. Maybe the image we have created of the mountain lifestyle needs to be more varied. Maybe, as a fairly close-knit and passionate group of skiers and riders, our community carries a deep implicit bias. It would not be a stretch to call us a clique. Maybe it’s our fear of change. While I would like to think that I have been an agent of change in this industry, a decade later I am still running a company that has very limited racial diversity.”

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BROOMFIELD — Vail Resorts Inc. (NYSE: MTN), which has seen resorts close up shop and revenues shrivel in the wake of the COVID-19 outbreak, got a reprieve from its tough luck streak this week as the company’s third quarter earnings beat Wall Street predictions.

The firm posted quarterly earnings of $3.74 per share on $694 million in revenue. Zacks Consensus Estimate for the quarter was $2.67 per share.

 “Our results for the quarter and for the full 2019/2020 North American ski season were significantly impacted by COVID-19 and the resulting closure of our North American mountain resorts beginning March 15, 2020, for the safety of our guests, employees and resort communities,” Vail CEO Rob Katz said. “In addition, even before the closure and during the first two weeks of March, we experienced a negative change in performance that we believe was due to the impact of COVID-19 on traveler behavior.”

Vail predicted the virus could ultimately cost the firm $200 million in revenue this year. “Relative to these expectations, our results were favorable by approximately $40 million, primarily driven by cost actions implemented in April 2020,” according to the firm’s earnings report. 

In a separate memo issued this week, Katz addressed the George Floyd killing in Minneapolis and systemic racism, calling for the ski industry to work harder on inclusion and diversity of both workforces and customers.

“As much as I have been saddened seeing these acts of racism across our country, I am also confronted by the…