Hilton Grand Vacations (NYSE:HGV) experienced slower consumer spending and sales challenges in the timeshare industry during the second quarter that caused the company to post Q2 results that left Wall Street disappointed and shares at their lowest level this year.
“Our results were below expectations this quarter, as we experienced some sales challenges along with a pullback in consumer spending behavior late in the quarter,” said CEO Mark Wang.
The challenges in the leisure industry, evidenced earlier this week by Airbnb (ABNB), Tripadvisor (TRIP) and parent company Hilton (HLT), coupled with higher expenses during the quarter resulted in a profit of $0.65 per share, down from $0.85 a year ago and $0.43 below expectations. On an unadjusted basis, net income plummeted to $0.02 per share compared to $0.71 per share in the same quarter a year ago. Sales increased 23% to $1.235B, impacted by a net deferral of $13M this quarter, more than twice a net deferral in the same quarter last year, but also missed expectations. Adjusted EBITDA dropped 12% to $218M.
For the full year, Hilton Grand Vacations (HGV) has updated its adjusted EBITDA guidance to a range of $1.075B to $1.135B, down $125M from the prior guidance range.
Shares are down 12%, leaving a large opening gap from Wednesday’s $38.26 low.
Hilton Grand Vacations faced Q2 ‘sales challenges, pullback in consumer spending’
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