Marriott Vacations Worldwide Reports $1.2 Billion Revenue and $56 Million Net Income in Q1 2025

Marriott Vacations Worldwide Corporation reported a total revenue of $1.2 billion for the first quarter of 2025, a slight increase from $1.195 billion in the same period of the previous year. The company’s net income attributable to common stockholders rose to $56 million, or $1.60 per share, compared to $47 million, or $1.32 per share, in the first quarter of 2024. This represents a 19.15% increase in net income year-over-year, driven by improved performance in vacation ownership sales and management services.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Revenue from the sale of vacation ownership products increased to $355 million from $352 million, while management and exchange revenues rose to $215 million from $211 million. However, total contract sales in the vacation ownership segment decreased by 2% to $425 million, attributed to a decline in volume per guest (VPG) and a larger percentage of first-time buyer sales, which typically yield lower VPG.

Strategically, Marriott Vacations Worldwide has been focusing on operational efficiencies and growth through its newly established Strategic Business Operations office. This initiative aims to modernize processes and systems, enhance sales efficiency, and optimize inventory management. The company incurred $10 million in restructuring charges during the first quarter as part of these efforts. Additionally, the company has committed to acquiring vacation ownership units in various locations, including Bali and Thailand, to expand its inventory.

Operationally, the company reported a total of 1.538 million active members in its exchange and third-party management segment, a decrease from 1.566 million in the prior year. Average revenue per member also declined by 4% to $39.94. The company’s employee headcount remained stable, with no significant changes reported. Marriott Vacations Worldwide continues to monitor market conditions and consumer demand closely, particularly in light of ongoing economic uncertainties, and expects to maintain its focus on enhancing customer engagement and product offerings.

Looking ahead, Marriott Vacations Worldwide anticipates continued challenges in the market, including potential impacts from inflation and changing consumer behaviors. The company remains committed to its strategic initiatives aimed at driving growth and improving operational efficiencies, with expectations of achieving $150 million to $200 million in run-rate benefits by the end of 2026. The management expressed confidence in the company’s ability to navigate these challenges while delivering value to its shareholders.