Marriott Vacations Takes a Beating
Skift Take
Marriott Vacations Worldwide's stock fell sharply due to a disappointing earnings report and a significant loan loss provision, indicating struggles in the timeshare market.
The DJIA dropped 495 points, Nasdaq was down 405, the S&P 500 was down 76, the 10-year treasury yield was down .13 to 3.98% and suddenly investors are concerned that the reason there could be interest rate cuts is because of an economic slowdown. Lodging stocks were lower. SHCO was down -9, VAC and BHR both fell -8% and HGV was down -5% on the day.
After a slew of earnings reports after the close of trading yesterday, let’s start with the ugliest Marriott Vacations Worldwide. The stock took a beating, but one could say it has more downside following a miss and an even bigger guide lower for the year. Add in a loan loss provision that is the highest in company history at 27.7% of sales, and clearly, VAC has lost its edge in the timeshare business. The weakness is said to be in first-time buyers and a slower-than-expected recovery in Maui. If you get a chance, talk to some V
