The company’s CEO says while tariffs on operating expenses, such as food and beverage, are manageable, higher costs involving capital expenses are another story.
Wynn Resorts Ltd. is postponing a remodeling project at its Encore Las Vegas property because of potentially costly impacts of tariffs, the company’s top executive said Tuesday.
Craig Billings, CEO of Wynn Resorts, said during the company’s first-quarter earnings conference call that $375 million in projects would be delayed, but that operational expenses affected by tariffs would be “low and entirely manageable.”
Most of those operational expenses, he said, involve food and beverage and “we are actively working through alternative sourcing for the most impactful items.”
But capital expenses, he said, are a different story.
“We had a number of (capital expense) projects in flight in the U.S., and while we have sourced for those projects presuming some tariff impact, the current tariff rates have driven us to delay about $375 million of cap-ex projects, including the Encore Tower remodel,” Billings told investors at the beginning of the call.
“Once tariff rates have settled, we will thoroughly re-spec and resource the most severely affected items. While we’re staying nimble, the pace of change at the moment is just too significant to commit to revised timing on that cap-ex.”
This is a developing story. Check back for updates.
