Travel + Leisure Co. Goldman Sachs Global Consumer and Retail Conference
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All right. I think we can go ahead and get started. It is right at 9:15 A.M. So good morning, and thank you so much everyone for joining us here at this next session at the Goldman Sachs Global Consumer and Retail Conference. My name is Lizzie Dove. I cover gaming, leisure, and lodging here, and it is my absolute pleasure to welcome Erik Hoag, CFO of Travel + Leisure, and Andrew Burns, Vice President at Investor Relations. Thank you so much for taking the time to be here.
We really appreciate it. Lizzy, thanks for having us.
Yeah. Let us start off. Of course, there is always the quarterly puts and takes, but just stepping back for a second. T+L has been very consistent. It has been consistently a mid-single digit EBITDA grower. EPS has been in the double digits. You have recently done a couple of acquisitions. When we step back for a second and think about the next 12 to 24 months, how do you think about the sustainability of that algo? With these acquisitions, or anything else, has anything structurally changed at all in that outlook?
Well, thanks for having us, Lizzy. Maybe I just zoom out a little bit and talk about our performance year to date. I think that that is maybe just to ground everyone in terms of how we are doing. In the first quarter, we outperformed our sales above the high end of our guide. In EBITDA, we outperformed the high end of our guide. In our second quarter results, revenue grew 4%, EBITDA grew 8%, earnings per share was up 14%. Again, sales above the high end of our guide, EBITDA above the high end of our guide. Then maybe even more interesting in terms of the first six months of the year, Lizzy, than the P&L, or equally as important, is what we have done from a balance sheet and capital allocation perspective.
We've increased our dividend by 7% year-over-year. We've increased share buybacks by 25% first half to first half. We've reduced our leverage by one quarter turn, and to your point, in the month of July, we added in two tuck-in M&A transactions. We've had a great start to the year. In terms of the algorithm, to your very specific question, we're already living inside the algo.
Our algo is sales growth of 6%-8%, translating into mid-single digit EBITDA growth and teens EPS.
Yep. Converting roughly 50% of that EBITDA into free cash flow.
Over the next 12 months, we are absolutely focused associated with continuing to execute against the core algo. We want to integrate our M&A transactions.
Yep. We've got a heavy focus associated with launching our new brands.
All of that under the umbrella of continuing to be thoughtful allocators of capital to our shareholders.
Definitely. There's a lot of interesting points you made there that I certainly want to come back to. But maybe before we go into some of the segments, we're at the consumer conference, we're going to hear from a lot of different consumer verticals here. I'd love to hear from you, from your vantage point, what do you think about the health of the consumer right now. As we've progressed over the summer, there's been some puts and takes this year, tax refunds, good guy, higher gas prices, bad guy. What are you seeing. Has there been any kind of divergence between cohorts or anything that you call out as we go into this back-to-school season?
Yeah. When I think about Travel + Leisure, our consumer continues to perform pretty well.
Again, zooming out a little bit, whether you go back to Liberation Day during the second quarter of 2025, where again, we sort of outperformed the guide numbers that we had in that period. Whether you go back to the first part of this year when things opened up in the Middle East, or look at the summer. We continue to perform on top of choppy macro, but our consumer continues to be very durable.
If you look at some of the KPIs under the hood at Travel + Leisure, whether it is length of stay, our booking window, the distance traveled to our resorts, tour flow.
Yeah. We continue to see positive tour flow.
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