What happened
Vacation real-estate specialist Marriott Vacations Worldwide (VAC 0.79%) underperformed a weak market last month, as the stock fell 15% compared to a 7% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.
The decline still left shares well above the market so far in 2019, up 33% compared to a 15% gain in the S&P 500.
Image source: Getty Images.
So what
The timeshare giant announced generally strong first-quarter earnings on May 13, with contract sales and adjusted earnings each growing 5%. Marriott Vacations Worldwide noted a few challenges, including a slight drop in volume gains. But management wasn't concerned with the slowdown, saying in a conference call that it was driven by a planned financing change for buyers with relatively low credit scores.
Now what
The company is on track to reach its broader growth goals for 2019 as it works to integrate the new business it acquired when it purchased a group of ILG brands last year, including Hyatt Vacation, Vacation Resorts International, and Vistana Signature Experiences. Executives are hoping their greater scale will produce a more efficient business as the global timeshare industry continues expanding.
