Vail Resorts reports downhill trend: Visits and stock prices dip for Broomfield-based company.

Vail Resorts has hit the financial equivalent of an unexpected snow squall, warning investors Monday that it could no longer provide them with guidance on what was ahead because of the outbreak of the novel coronavirus.

The Broomfield operator of ski resorts missed earning expectations for its second fiscal quarter and said it was withdrawing a financial forecast it had provided investors in January and that it would stop providing any kind of guidance until things cleared up.

And breaking with tradition, the company’s board is holding off on whether to provide a dividend increase until June.

“We remain focused on the health and safety of our guests and employees,” Vail Resorts CEO and chairman Rob Katz said in an earnings call Monday afternoon. “Our resorts are fully open and operating normally.”

But the motivation and ability of skiers and summer tourists to follow through on their plans is another question.

The company’s ski resorts in the Pacific Northwest were already struggling with the worst snow conditions in 30 years, which contributed to a 14% decline in visits there. Still, things were humming along for the company’s Northeastern and Western resorts through the holidays, leaving executives hopeful about 2020.

But the Colorado resorts started seeing business soften in January and February, contributing to a 5.2% decline in skier visits in the company’s second fiscal quarter. And in March, things took a sharp turn for the worse as the virus outbreak spread in the U.S.

“We saw a slowdown in bookings and an increase in cancellations,” Katz said.

Granted, the ski season is almost over in the northern hemisphere and the company long ago collected money from the holders of its Epic Pass. Most destination skiers have made their plans well in advance, but Colorado has seen a trend of more vacations planned for later in the season.

Katz said the slowdown was more pronounced in Vail and Breckenridge, while Beaver Creek and Keystone were holding up better.

He noted there were two different dynamics at play, starting with the concerns about travel because of the outbreak, which is hitting all kinds of tourist activity. Longer-term, there are impacts that could follow from a weaker economy, including reduced pass sales as consumers tighten their belt and reduced destination visits.

To help boost the value proposition for pass holders, the company next season is rolling out Epic Mountain Rewards, a loyalty program that knocks 20% off the price of lodging, food, lessons, equipment rental and other items.

The hope is that those discounts will encourage more single-day visitors to spend more at the company’s resorts.

“It is a pretty powerful offer,” Katz told analysts.

Katz recalled that the company rolled out its Epic Pass in 2008, just in time to help it cope with the aftermath of the financial crisis and recession. It is hoping the rewards program can do the same, whatever is coming down the mountain.

Shares of Vail Resorts are down 24.1% for the year, including a 7.4% drop on Monday. The earnings report came out after the markets had closed. In after-hours trading, Vail shares fell from $182 to $167, a bigger percentage drop than the drubbing suffered Monday, Bloomberg reported.