BROOMFIELD, Colo.—Vail Resorts Inc. said Tuesday that its loss widened in the fiscal first quarter, typically a weak period before the start of ski season, as summer lodging sales sagged.
The stock went downhill, sliding more than 10 percent as the company said that at the end of November, advance lodging bookings at Vail’s owned and managed properties were down 13 percent compared with the same time last year.
Vail said it lost $41.2 million, or $1.14 per share, in the first quarter ended Oct. 31, compared with a loss of $34.5 million, or 93 cents per share, a year ago.
Revenue plunged 47 percent, to $80.8 million from $152.8 million, which the company attributed to the timing of real estate closings.
The company said first-quarter results are usually weak because mountain ski resorts aren’t yet open, and results are driven by summer lodging and golf. Lodging revenue was off 9 percent, to $41.4 million compared with $45.3 million a year ago.
The company said it was encouraged by an increase in ski season pass sales, but advance lodging bookings were running behind last year’s pace.
The company said through Sunday, pass sales were 11 percent higher in volume and 9 percent higher in dollars than at the same time last year, with most of the increase from people outside Colorado.
Last year, season passes represented 34 percent of lift ticket revenue.
CEO Rob Katz said the pace of season pass sales in a weak economy gave the company “good momentum” heading into winter.
“However, our overall lodging bookings are showing mixed results with some periods and locations stronger, while most periods are down compared to the prior year,” Katz said.
The company repeated its fiscal 2010 profit prediction, which it issued in September.
Vail shares tumbled $4.16, or 10 percent, to $37.17 in midday trading.
