Why Shares of Vail Resorts Wiped Out on Friday - Motley Fool
Fool.com - Fri 11 Jan 18:28 GMT

Why Shares of Vail Resorts Wiped Out on Friday - Motley Fool

Warm weather hits the mountains once again.

  What happened  Shares of mountain resort giant Vail Resorts (NYSE:MTN) fell as much as 15.2% in trading Friday after the company announced weak results from the holiday season.

  But management said that the preholiday season from December 1 to December 21 was lower than anticipated as poor conditions and weaker-than-expected short-term bookings hit the company.

  Now what Weather is always a risk factor for mountain resorts, and this year has once again been unusually warm.

  The good news is that Vail has transitioned its business to be focused on season-pass sales, which lock in season revenue before snowfall even starts.

  But if the warm weather continues in the mountains, we may see customers be a little less excited about buying a season pass in the coming years, which is the biggest long-term risk for the company.