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Travel + Leisure posts strong Q2, lifts outlook after resort deal
Second-quarter net revenue rose 4.4% year over year to $1.06 billion as the company added resorts and owners through its acquisitions in Maui and Hilton Head.
Travel + Leisure reported strong second-quarter results and raised guidance after stepping up its vacation ownership expansion, though not all parts of its business performed the same. The company, whose portfolio includes timeshare brands such as Club Wyndham and WorldMark and vacation brands including Margaritaville Vacation Club, said it increased net revenue 4.4% year over year to $1.06 billion, surpassing the $1.04 billion analysts expected. Adjusted diluted earnings per share came in at $1.88, up 14% from a year earlier and in line with consensus, while GAAP earnings totaled $109 million, with diluted GAAP EPS of $1.72. Adjusted EBITDA climbed 8% to $269 million, and the adjusted EBITDA margin expanded to 25.3% from 24.6%. In its core Vacation Ownership segment, revenue rose 6% to $907 million, with adjusted EBITDA up 13% to $247 million, helped by a 2% increase in volume per guest and a 6% rise in gross vacation ownership interest sales to $693 million. Still, Travel and Membership, which includes the RCI exchange and travel club business, weakened, with revenue down 5% to $157 million and adjusted EBITDA down 11%, underscoring that investors are focused on whether recent purchases can ultimately translate into broader performance.