Vail Resorts Fighting Impact From Economy As Skiing Figures Drop
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Katz Forgoing Salary Despite Vail
Resorts Beating Earnings Estimates |
Vail Resorts Chair & CEO Robert Katz yesterday discussed how the economy has affected the skiing industry. Katz: “Our core customer really loves the experience that we can provide and what we're seeing is they're still coming. But what's happening is that they're spending less when they're with us. So what we're trying to do is really re-package what we have to make it more accessible to everybody so that they can really still have the vacation they want to take.” Katz added through different packages and promotions, the resorts are “bringing down the entry cost to come for vacation, both on lodging, lift tickets, (and) ski school.” He noted the company is “selectively eliminating positions where we can find efficiencies but (we’re) not doing the kind of hatchet approach where you eliminate 10%, 15% of your staff” (“Street Signs,” CNBC, 3/11). Fox Business’ Liz Claman reported Vail Resorts “beat earnings estimates” yesterday, but Katz announced he “will not be receiving a salary this year.” Katz: “I wanted to really lead by example and set the tone for everyone, and I think it was also that our (BOD) reduced their cash retainers by 20%. Again, not a huge savings in and of itself, but it sets the tone from the top.” Katz said of the company’s financial outlook for this year, “Even though the second quarter was quite good, what we’re saying is probably for the third quarter, we’re going to do a little bit worse and … it’ll certainly be a down year for the company” (“Countdown to the Closing Bell,” Fox Business, 3/11).
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