Fri, Feb 28, 8:11 PM (58 days ago)
**Marriott Vacations Worldwide Corporation (VAC) Summary** For the fiscal year ended December 31, 2024, Marriott Vacations Worldwide Corporation reported total revenues of $4,967 million, a 5% increase from $4,727 million in 2023. The Vacation Ownership segment contributed $4,730 million, accounting for 95% of total revenue, while Exchange & Third-Party Management generated $231 million. Net income attributable to common stockholders was $218 million, down from $254 million in 2023, reflecting a decline in operating profit margins due to increased marketing and sales costs. Operating expenses rose to $4,477 million, driven by higher costs in marketing and sales and a significant increase in litigation and impairment charges. Earnings per share decreased to $5.61 from $6.28. The company faced challenges with loan defaults, prompting an increase in its vacation ownership notes receivable reserve by $70 million in Q2 2024. Strategically, Marriott Vacations aims to enhance its market position through digital capabilities, expansion of membership programs, and capital-efficient inventory management. However, risks include fluctuating interest rates, economic downturns, and regulatory changes. The company maintains a strong liquidity position with a focus on reducing its debt-to-Adjusted EBITDA ratio, currently at 4.0. Looking forward, Marriott Vacations plans to leverage its brand strength and customer loyalty programs to drive growth, while also addressing potential challenges from market competition and economic conditions.