Shares of Vail Resorts (NYSE:MTN) jumped 16% in May, according to data provided by S&P Global Market Intelligence, recovering some of what the stock lost in March and April. But even after the gain, shares are down 18% for the year.
May was a quiet month for Vail Resorts, but for the market overall it was eventful. Investors piled back into stocks in anticipation of the economy reopening and hopefully a strong recovery. Not surprisingly, a stock like Vail Resorts, which was hit hard during COVID-19 shutdowns, has performed well during the market bounce.
On June 4, we did get a glimpse of the first quarter of 2020, which ended on April 30, and it wasn't good. Revenue was down 27.5% to $694.1 million, and net income fell by 47.8% to $152.5 million. Given that resorts were shut down on March 15, it's remarkable that results weren't even worse.
There will be a lasting impact on business for Vail Resorts because last year's season-pass holders will be offered a discount for next season as a result of the early shutdown. But there's been some positive news now that we know COVID-19 is less likely to spread outdoors, where most of Vail's activities take place.
It's still uncertain how quickly travel and consumer discretionary stocks will recover given the fact that COVID-19 is likely still going to be around when winter ski season starts again. But the fact that the economy and resorts are reopening was welcome news for investors last month.