Vail Resorts Brings Back Longtime CEO Rob Katz To Steer Through Strikes, Sluggish Demand

Vail Resorts (MTN) announced on Tuesday that Rob Katz will return as CEO, effective immediately, replacing Kirsten Lynch, who has served as chief executive for three years.

Shares jumped 2.6%, with sentiment among retail investors on Stocktwits also increasing. Katz was CEO of the mountain resorts firm from 2006 to 2021.

Lynch also stepped down from the board of directors but will remain an advisor to the firm for a few months.

Vail Resorts has faced some recent challenges. In December, a strike by ski patrol staff at its Park City, Utah, property halted operations, resulting in a loss of business.

For the first time, Vail Resorts recently reported a decline in sales of its season lift passes, known as Epic Passes, compared to the previous year. 

Priced at roughly $1,000 this season, the Epic Pass provides unlimited access to 42 Vail-owned properties worldwide.

The company's services face tepid demand and growth in skiers.

"The Board believes now is the right time for this leadership transition," lead independent director Bruce Sewell said in a statement.

In 2011, Lynch joined Vail Resorts as chief marketing officer and was named CEO in 2021. The company's stock peaked in November 2021 during the pandemic-driven surge in outdoor recreation and has since declined by over 50%.

On Stocktwits, the retail sentiment jumped to 'bullish' from 'neutral' the previous day.

Several users reacted positively to the leadership change, with comments ranging from "good (for) long term" to "long overdue."

Vail Resorts’ stock is down 19% this year.

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