Vail Resorts has lowered its 2026 earnings outlook following a season plagued by record-low snowpack across its North American locations. The company's announcement reflects a significant impact on visitation and revenue streams.

The shortfall in snowfall, particularly in the Rocky Mountain region, led to a nearly 20% decrease in visits since the start of the season through January 4. This decline directly impacted key revenue centers, with ski school revenue dropping by 14.9% and dining revenue falling by nearly 16% compared to the previous year, according to an investor statement released yesterday. The company reported that snowfall during November and December at its Rocky Mountain locations was down almost 60% compared to the areas historical 30-year average. Western US resorts were faring only slightly better, with 50% less snowfall than average. Vail Mountain itself reported its worst snowpack since it started keeping records in 1978, with just 4.4 inches recorded. As a result, only about 11% of Vail Resorts' terrain in the Rocky Mountains was open last month.

The unusually dry conditions stand in stark contrast to the East Coast, which experienced record snowfall due to a rare polar vortex and La Niña combination. This uneven distribution of snowfall highlights the increasing volatility and unpredictability facing the ski industry due to changing weather patterns.

Vail Resorts, a major player in the ski resort industry, operates a network of resorts across North America. The company's business model relies heavily on consistent snowfall to attract skiers and snowboarders, driving revenue through lift tickets, ski school, dining, and lodging.

Looking ahead, Vail Resorts faces the challenge of adapting to a future where snow conditions may be less reliable. The company's revised earnings outlook reflects this uncertainty. It remains to be seen how Vail Resorts will mitigate the impact of climate change on its operations and maintain its financial performance in the long term.