Wynn Resorts Ltd

NASDAQ:WYNN

Welcome to the Wynn Resorts First Quarter 2025 Earnings Call. [Operator Instructions] This call is being recorded. If you have any objections, you may disconnect at this time.

I will now turn the line over to Julie Cameron-Doe, Chief Financial Officer. Please go ahead.

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings, Brian Gullbrants and Jenny Holaday in Las Vegas. Also on the line are Linda Chen and Frederic Luvisutto. Please note that we've published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our newly relaunched Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true.

I will now turn the call over to Craig Billings.

Thanks, Julie. Good afternoon, and as always, thank you for joining us.

Before we get into the quarter, I want to take a moment to recognize a very significant milestone. Last month, I was pleased to join nearly 1,700 of our day 1 Wynn Las Vegas employees in celebration of the 20th anniversary of our iconic Las Vegas resort. I want to take a moment to express my gratitude to each and every one of our team members, including those 1,700 folks who have been with us in Vegas since the beginning. This anniversary was a tribute to the dedication, passion and hard work that so many have demonstrated over the years to build the strength of our business today, a business that is delivering near record results with a significant property opening now less than 2 years away.

I also want to acknowledge the significant contributions of Elaine Wynn to both our business and the broader Las Vegas community. Elaine, who cared so deeply about our employees was truly one of a kind and will be missed by many.

Turning to the business. I'd like to address upfront the potential impact of tariffs on our business. We expect the direct impact of tariffs on OpEx to be low and entirely manageable with most of the impact in the U.S. stemming from food and beverage, where we are actively working through alternative sourcing for the most impactful items. CapEx, however, is a different story. We had a number of CapEx projects in flight in the U.S. And while we had sourced for those projects presuming some tariff impact, the current tariff rates have driven us to delay about $375 million of CapEx projects, including the Encore Tower remodel. 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 CapEx.

Turning to the potential indirect impacts. There's been plenty of recent research on the potential impact of tariffs on growth. And while we are certainly better insulated than some, given our more resilient, affluent customer base, there is obviously uncertainty out there. So far, however, our businesses in Vegas and Macau are holding up quite well. In Vegas, April RevPAR was up slightly from 2024, slot handle was up and group activity was as expected. So the business through April felt pretty good. And the visibility we have into forward demand, which is primarily through our group and convention business, also looks just fine. Of course, the booking window in other channels is much shorter than group, and so we are watching those channels carefully.

In Macau, mass drop in April was in line with 2024 and direct VIP turnover was up nicely. Golden Week, which just ended, saw mass drop up from last year and full occupancy in the hotels. But again, the booking window there is short, and we are watching customer activity day-to-day. Long story short, recent results have been good, but we have to acknowledge the uncertainty out there and the impact that uncertainty may have on demand. As always, we have a playbook ready for every scenario. So with that, let's turn to the quarter.

We were pleased to deliver another solid quarter of EBITDAR here in Las Vegas on an impossible comp against the 2024 Super Bowl. On last quarter's call, we called out a $25 million headwind to EBITDAR, and we did a bit better than that as we were only down about $11 million when adjusting for hold in both periods. Demand remained healthy in the quarter with a 4% increase in total casino revenues even without the Super Bowl in 2025. Our slot business continues to be a bright spot as the investments we have made in our premium slot areas and in the team have helped maintain our premium positioning. In fact, if you remove Super Bowl weekend from the prior year quarter, we were up across the board, drop, handle, RevPAR, nongaming revenues and EBITDAR, all up year-over-year.

Turning to Boston. Encore Boston Harbor generated $57 million of EBITDAR. Slot volumes continue to hold up well with slot went up about 3%. More recently, demand in Boston has remained healthy through April with drop and handle flat to last year.

In Macau, other than hold, the business in Q1 felt very good. Business generated $252 million in EBITDAR with poor VIP hold costing us nearly $40 million of EBITDAR. We saw healthy volumes in the quarter with turnover up 31% and mass drop up 1 point, both sequentially. Adjusted for VIP hold, we grew market share sequentially and improved EBITDAR margins from Q4 to Q1. While the market in Macau continues to be highly competitive, we remain disciplined in our focus on maximizing EBITDAR and generating a healthy margin profile.

We were also pleased to recently open the Gourmet Pavilion food hall at Wynn Palace, an exciting new amenity for us, which is already driving visitation and eliciting enthusiasm from our customers. In fact, since opening the Gourmet Pavilion, we have seen about 2,400 incremental daily restaurant covers at Wynn Palace, a strong indicator of additional visitation to the property.

Turning to Wynn Al Marjan Island. Construction is now up to the 47th floor of the tower, and we will top out later this year. We will soon be commencing with the fit-out of interiors in portions of the building, and we're also now sculpting the elaborate beachside pool-scape. We remain on track for our targeted opening date, and we believe the property will be well positioned as the only integrated resort to open in the near term into what several analysts have predicted will be a $5-plus billion GGR market. We think this is the most compelling development opportunity in the industry right now.

Our future is bright. And as I mentioned last quarter, while our stock price continues to inappropriately reflect the value of our assets, we will buy back stock. To that end, we purchased $200 million of stock in the first quarter and another $100 million thus far in Q2.

With that, I will now turn it back to Julie to run through some additional details on the quarter.

Thank you, Craig.

At Wynn Las Vegas, we generated $223.4 million in adjusted property EBITDAR on $625.3 million of operating revenue during the quarter, delivering an EBITDAR margin of 35.7%. Removing the Super Bowl weekend from each quarter, revenue and EBITDAR were up 5.4% and 2.7%, respectively. OpEx, excluding gaming tax per day, was $4.3 million in the quarter, up 4.1% compared to the prior year due to normal wage inflation from our union and nonunion areas and a prior year recovery of bad debt. The team in Las Vegas continues to exercise strong cost discipline and has been able to mitigate the majority of recent payroll-related increases without impacting the guest experience.

Turning to Boston. We generated adjusted property EBITDAR of $57.5 million on revenue of $209.2 million with an EBITDAR margin of 27.5%. Prior year EBITDAR benefited $2 million from a onetime credit to OpEx in addition to about $3 million of high hold. We've stayed very disciplined on the cost side with OpEx per day of $1.18 million, up just 1% from Q1 '24 despite continued labor cost pressures in that market. The Boston team has continued to do a great job of mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience.

Our Macau operations delivered adjusted property EBITDAR of $252.1 million in the quarter on $865.9 million of operating revenue, resulting in an EBITDAR margin of 29.1% in the quarter. Lower-than-normal VIP hold impacted EBITDAR by a little over $38 million in the quarter. OpEx, excluding gaming tax, was approximately $2.64 million per day in Q1, flat year-on-year. The team has done a great job in staying disciplined on costs, and we remain well positioned to drive strong operating leverage as the market continues to grow over time.

In terms of CapEx in Macau, we recently opened the Gourmet Pavilion at Wynn Palace, as Craig mentioned, and we're currently advancing through the design, planning and approval stages on several of our larger concession commitments. As we noted the past few quarters, these projects require a number of government approvals, creating a wide range of potential CapEx outcomes in the near term. As such, we expect total CapEx spend in 2025, inclusive of our concession-related commitments and other projects to range between $250 million to $300 million.

Moving on to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of $3.2 billion as of March 31. This was comprised of $1.8 billion of total cash and available liquidity in Macau and $1.3 billion in the U.S. The combination of strong performance in each of our markets globally with our properties generating nearly $2.3 billion of LTM adjusted property EBITDAR, together with our robust cash position creates a very healthy, consolidated net leverage ratio of just over 4.3x.

Our strong free cash flow and liquidity profile also allows us to continue returning capital to shareholders in both Macau and the U.S. To that end, the Wynn Macau Board recently announced it has recommended to shareholders an increase in the final dividend for 2024 to $125 million, up from $50 million in the previous period, subject to shareholders' approval at the upcoming Annual General Meeting on May 23. In addition, the Wynn Resorts Board has approved a cash dividend of $0.25 per share payable on May 30, 2025, to stockholders of record as of May 16. During the quarter, we repurchased 2.36 million shares for approximately $200 million and an additional $100 million so far in Q2 '25. These share buybacks, together with our recurring dividend, highlight our focus on and continued commitment to prudently returning capital to shareholders.

In terms of CapEx, we spent approximately $160 million on CapEx in the quarter, primarily related to the villa renovations and food and beverage enhancements in Las Vegas, concession-related CapEx in Macau and normal course maintenance across the business. Additionally, we contributed $51.2 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution to date to $682.9 million. During the quarter, we started drawing on the construction loan with a drawn amount to date of $278 million. We estimate our remaining 40% pro rata share of the required equity is approximately $650 million to $725 million.

With that, we will now open up the call to Q&A.

[Operator Instructions] Our first question comes from Carlo Santarelli with Deutsche Bank.

Maybe this is for Craig. I know that the way that we see promos, discounts in Las Vegas is different than maybe the way that you guys think about them or see them. But it does look like in the first quarter, that came down fairly, really, both as a -- relative to [indiscernible] on a dollar basis. I was wondering if there's been any change there or if just a lot of what we're seeing is the Super Bowl comparison and some of that savings is coming through just from that weekend alone.

Sure, Carlo. It's -- those numbers are going to correlate very strongly with ADR because a significant component of our reinvestment is in the form of rooms. So your presumption that it relates to Super Bowl is correct because our ADRs over Super Bowl were even more off the charts than they are ordinarily.

Okay. Great. And then, Julie, you talked about kind of the contributions and where things stand as of today. The -- how should we think about the cadence of kind of that remaining $650 million to $725 million?

Yes. Thanks, Carlo. I think we've talked about this in the past. So it's following the usual kind of construction curve. So it's going to be -- we'll be deploying that over the course of the remainder of this year and into next year.

But it is pro rata. It is essentially side-by-side with the bank financing. So it is not equity first, bank second.

Our next caller is Shaun Kelley with Bank of America.

Craig, maybe you could just give us your thoughts on -- there's obviously a lot of questions around kind of the consumer and some of the mix. And as your business has evolved, particularly the growth you've seen in slots, could you just give us your latest sense on sort of how much international inbound is Wynn exposed to and how much sort of China or Asia-sourced VIP should we think about purely on the Las Vegas side of the equation? That would be helpful.

Sure. First step is to bifurcate it between the very high end and not the very high end. On the very high end, we're not seeing really any implications from -- for visitation at all. Outside of that group, post-COVID, international is like 9% of Las Vegas room nights, which is we can easily, easily backfill. And so we don't see -- we do see a decrease in international visitation, particularly from Canada and Mexico, as others have mentioned. It doesn't really impact us much at all.

That's helpful. And then big picture, obviously, it looks like -- it sounds like the forward calendar and everything you're seeing on group is consistent and fairly unchanged, which I think fits with everything we've heard from the market right now. But maybe just your thoughts on sort of the rate picture as we move into the summer kind of across Memorial Day. Sometimes that area gets a little bit more volatile. Obviously, the booking windows are very short. But anything that you see in activity there or anything you see on the pricing side one way or another that we should be aware of?

Nothing -- from a pricing perspective, nothing out of the ordinary. From a booking perspective, honestly, this last weekend, we had bookings that were well above the norm. And so, look, it -- we can't be naive. There's uncertainty out there, as I mentioned in my prepared remarks, and we have to watch this stuff day-to-day. But as I also said in my prepared remarks, things look fine as of now, and booking continues kind of where we would expect it. Although, again, as you rightly point out, the booking window is relatively short, so we'll see. Once things really start to kick in and the impact of the decrease in port traffic that you're seeing in L.A. and the impact of tariffs really set in, we'll see. But as of now, everything's pretty good actually.

Brian, anything you'd add?

I'd say that the revenue team and our sales team are continuing to take rate wherever they can. You can look for yourself. Our rates are extremely strong, beating the market. And when we look to '26 on the group side, we're pacing even better than expected. So feeling good about group pace and feeling good about where we are right now. We'll see what happens in the summer.

But watching it like a hawk.

That's right.

David Katz with Jefferies.

Can you just talk a bit more about Macau? And we've obviously heard your commentary about the competitiveness in that market. And just talk a bit more about how that manifests and how you respond to it. Are we talking about credit or promotions? Or what else is manifesting in terms of that heightened competitiveness?

Sure. I mean I think it's -- I think one of our peers talked about it on a call regarding the strength of the premium mass market and the importance of the premium mass market to Macau at the moment, and we would clearly second that. I mean you have a market where the booking window is short, and for a while, the promotional environment was probably more player-friendly than it had historically been. That's eased and what we see is a pretty stable promotional environment now. But it's the day-to-day, hand-to-hand combat of getting that customer to make a trip and getting that customer to come to your property. So I can't say it's any one of those things that you mentioned. It's really a combination of kind of all of them. And the competition for that customer segment is fierce.

So what do we rely on? We rely on the things that we've always done really, really well, service, the quality of the product and then muscles that we've built over the course of the past few years on the machine learning side and on offer development and offer delivery. On many of the new amenities that we've put in, the complete reconfiguration and changes that we've done in our food and beverage program, the opening of the food hall that we just talked about. All of those things are important to our ability to be competitive. But it's a river of nickels, David. So it's really all of those things, and you got to be prepared to do all of those things and do them well.

Understood. And I just want to be clear, is it notably worse than it was 6 or 12 months ago? And do you have any sense about what the trajectory of that might be in the next 12 months?

No, I don't. In fact, I think it's better. So I think everybody came out of COVID -- I mean, you had this period of closure, and you had a period in which the junkets were taken out of the market. And so I think you had this period of time coming out of COVID when everybody was kind of finding their footing. I think we were unique coming out of COVID because we were in particularly strong shape coming out of the gates.

And I think at this point, everybody has kind of found who they are and how they're going to compete. And I think that stability that we're seeing in the market over the course of the past, call it, 6 months is good for the market, but it doesn't change the fact that it's a very, very competitive dynamic. When I say it's a competitive dynamic, it's not a negative statement. It's not a -- I'm not saying anything bad about the market. I'm just stating the reality, and it's a reality we live with every day, and we're fine with it.

Stephen Grambling with Morgan Stanley.

Craig, I think in your opening remarks, you talked about the disconnect in the value of the stock and your willingness to buy back, which sometimes you hear about conglomerates and holding companies having discounts. I guess how do you think about synergies from operating as one business across multiple properties globally and one brand versus perhaps dyssynergies, if there ever was an option to consider separating out properties?

Well, taking a single-scale business that can pull cash flow from multiple sources and redeploy it into development opportunities globally and turning it into multiple subscale businesses that cannot is probably not a good idea. Second, you have a reasonable amount of cross-property play. And in fact, there are elements of our marketing strategy that are deployed globally. You have a lot of efficiencies in the capital structure by having a business that has more scale and more sources of cash flow. There's a whole litany of reasons that operating the business as a single business makes sense.

That's helpful. And one of the first things you said was development. So I'm curious, one of the things that you haven't touched on yet, I don't think, was just around New York. That's something that's been out there a little bit. There's been some waffling from some of your peers. I guess what's your latest thoughts and maybe any timing thoughts on New York as a development opportunity?

Sure. They -- I think the current plan seems to be for the RFAs to be submitted by the end of June with licenses awarded sometime in -- by the end of '25 or early '26. New York's a great potential market, and we're certainly prepared to put together a fair proposal. It's also a complicated market with a lot of considerations. You've heard some of our peers talk about online gaming, and that's certainly a point of concern for us. And we also need to consider the potential impact of tariffs on build costs. So -- and then pile on top of that the fact that the local politics are complicated. So we continue to be in the running in New York, but we absolutely will not get over our skis to win the license there.

Our next caller is Robin Farley with UBS.

Just going back to the CapEx that you mentioned you're putting on hold. Can you give us a sense of sort of what projects? And also, what's the scale of that -- the increase in that CapEx cost? I'm just thinking if that would be similar read-through to your potential New York project in terms of the CapEx impact from tariffs.

Well, first, the bulk of it is the Encore Tower remodel. So call that high $200 million out of $375 million that we talked about. The rest of it is kind of cats and dogs that we were doing here in the U.S. I don't think the read-through would be instructive because you're talking about a greenfield new build where you have a lot of steel, a lot of MEP, a lot of things that are sourced from a lot of different places. And in this particular instance, we had kind of 2 or 3 relatively high dollar items on a per unit basis that were sourced from high-tariff locations. So I don't think the read-through would be applicable.

Okay. Great. Now -- understood. And then just on the group piece, some of the larger hotel companies have talked about softening group. And so I think the comment about 2026 was like pacing better than expected. Can you -- I guess, what had you been expecting just to think about how your '26 for this is trending just relative to what we're hearing from the other large hotel companies.

Sure. I'll start by saying we are not experiencing softening group. But Brian, do you want to follow up?

Yes. The strength in '26 that we're seeing, we would probably attribute to Q1. NADA, CONEXPO, there's a couple of large groups that alternate cycles. And they're lining up next year, so next year looks great. Demand is strong, and we're looking quite good. So feeling good about '26 right now.

John DeCree with CBRE.

Maybe on the development pipeline, you mentioned Thailand in the slide deck. We've talked about that a little bit in past calls and New York, but I guess there's some rumbling that Japan might reopen bidding for IRs. Curious, Craig, if you looked at Japan again and under kind of what pretense that might be interesting for you.

There's -- thank you for the question. There's -- we'll always look at any gateway city where meaningful capital can be deployed, and we think the Wynn brand resonates. So Japan fits that bill. There's structural challenges in the way that the licensure and ownership have been outlined in Japan. And so when we look at it, of course, but it's got to be right, and the setup has to be right for us.

We have plenty of development opportunities. We have a land bank in the UAE. We have a land bank in Boston. We have a land bank in Las Vegas. You mentioned Thailand. Obviously, the bill there has been delayed, and there's some components of the bill that probably won't work if they stay in the bill. But it's an amazing potential market with unbelievable airlift infrastructure, tourism, et cetera. So we've got plenty of development opportunities. We would only look at Japan if the setup was right.

That's helpful, Craig. I appreciate the insight on that one. And then maybe an easy one. Not sure to the extent inflation or construction cost inflation kind of overflows outside of the U.S., but do you see any risk in global construction costs at the UAE? I think you're contracted there. Or even in Macau, any potential cost increases on CapEx that you've seen?

Quite the opposite. Well, 2 things. One, we're -- we have a substantial portion of the UAE already bought out. So we have a very, very strong budget certainty in the UAE. Elsewhere, you really -- it's more on the FF&E, on the furniture, fixtures and equipment side. You have vendors out there that have lost a lot of customers, and so you see opportunities actually from a cost savings perspective. I can't quantify that into any of the projects that we're executing right now because it's too early, frankly, with where we are in the process in Macau. And again, we're pretty much bought out in the UAE. But no, I don't see any spillover effects outside of the U.S.

Brandt Montour with Barclays.

So I just want to clarify on the CapEx announcement today on the call with $375 million of spend. The deck -- the decks that you put up, it doesn't look like there's much difference for the Encore Tower shifting. I'm just hoping you could clarify that. And then specifically, the -- for the Encore Tower, I don't think you were expecting much disruption in the year. And so I guess we should sit here and think that there's not much benefit of pausing it for operational considerations, but how are you thinking about how that will affect the '25 P&L?

Sure. Thanks for that, Brandt. Yes, if you look carefully at page -- I think it's Page 19 in the presentation, we did keep everything as is, and we -- but there's a footnote calling out the $375 million delay. The reason for that, and we debated how to present it, was really because, as Craig said, we can't actually come up with the accurate timing of when that's going to happen. So we don't want anyone to think we are canceling it because we're absolutely not, we're fully focused on getting it done. We just have to do the work now to figure out, once tariffs settle down, how can we re-spec and rescope and then reschedule and re-time how we're going to do it. So it's still in the CapEx forecast because it's going to happen at some point, it's just we can't be clear on the timing so we just footnoted it.

And it -- figuring out the revised timing is not trivial because when we re-spec pieces, particularly furniture and fixtures, it's not like we're flipping through a catalog, right? We're getting samples created. We're sit testing those. We're beating those up. We're getting feedback from operation from the finishes. We're giving comments back to the vendor. This is a process that takes a lot of time. So to the extent that we re-spec a single piece of furniture, we're delayed by x number of months. There's just nothing we can do about that.

So as Julie said, once we have certainty on sourcing and once we have certainty on what the tariffs will be from the country of origin on those sources, then we'll recommence. But we just don't know when that is right now. Right now, we're selling all the rooms in Encore through end of this year, Brian?

Correct.

End of this year. And so if we move out another couple of months, then we'll start selling through the end of Q1. But we'll do the CapEx eventually.

Okay. That's really helpful. And then a follow-up on Macau. Julie, I think you said that the OpEx ex tax per day was flat year-over-year. I know you also opened up the food hall at the Palace. I'm just sort of curious how you're able to keep OpEx per day flat with that opening. And then also, if you could give us a sense of how that should trend throughout the year with -- I know that you guys have more concession agreement-related stuff, but you're waiting on approval. So any other thoughts on the progression of the year on OpEx per day would be helpful.

Sure. Thanks for that. We opened the Gourmet Food Pavilion (sic) [ Gourmet Pavilion ] just about a week ago, so we didn't -- it wasn't included in the quarter. We've managed OpEx very, very carefully, though. We've been very focused on how we can drive economies elsewhere so that we can seek to neutralize the impact of the additional costs associated with that. So we're working on that. And as a result, as we look at where OpEx is going to land throughout the remainder of the year, it's in the right setting where it is right now.

And I would just add to that. The team who's on the call is doing their job right, we're generating incremental revenue out of the footfall that we get out of that facility. So sure, we pick up a couple of hundred FTEs. We can manage that pretty easily relative to the total employee base, but we should be driving incremental EBITDAR out of that. And that's really the approach with each of the concession-related commitments that we made.

Now the margin profile on those concession commitments, we need to focus on that and drive that. But if we have 2,400 incremental covers that we're doing in Wynn Palace every day, it's a pretty trivial amount of conversion to the gaming floor that we need out of those incremental visitors in order to drive EBITDAR that more than fades the OpEx coming out of the food hall itself.

Ben Chaiken from Mizuho.

Regarding Wynn Al Marjan, I think in the past, we've talked about some of the different player cohorts in 3 buckets. Number one, inbound to Ras Al Khaimah. Number two, those living in Dubai. And then number three, destination luxury customers. Understanding this is a brand-new asset, how would you rank order those in terms of opportunity as you see it? And then anything you can share regarding the expected demand or magnitude of the second bucket, those living in Dubai?

You either took really good notes or have a great memory. Those are, in fact, the 3 cohorts that we would focus on. I don't rank order them because each of them is incredibly important. You can think of those markets -- you can think of them slightly differently. So in Las Vegas, as an example, 25,000 people a day come through Wynn Las Vegas, but only 10,000 of them are lodgers. And the rest of them are coming from adjacent properties and from the Las Vegas Strip. That's very akin to the first group that you mentioned, and that's about having sufficient amenities to drive -- to really get 1 of their 4 days in Ras Al Khaimah on property.

The second bucket is a lot like a local's market. And so you can think of that very similar to the wonderful business that we have in Boston, where you're dealing with people that are within a certain driving range. And you market to those folks in a very specific way. You use food and beverage in a very specific way.

And the third bucket is really the vast majority of our lodger business here in Las Vegas, which is a fly to market as opposed to a local's market. So from an EBITDAR perspective, each one of them is important. And from a vibe and aesthetic and customer experience perspective, each one of them is important, and they each play a role in the programming that we have put into that building.

Chad Beynon with Macquarie.

I wanted to ask a 2-parter on a few of the nongaming-related items in Las Vegas. Julie, I think you mentioned at the beginning that OpEx should increase on food and beverage. First question, is there a specific growth rate that you can kind of talk to that would offset some of those price increases to keep margins flat?

And then my second question is around the retail business. Not sure if you've seen any impact in terms of the high-end handbags and watches at your stores. And can you just kind of remind us if it's roughly an 80-20 base versus turnover on that business?

Sure. I'll take each one of those. So first, I may have -- perhaps I misspoke in my prepared remarks. What I said in my prepared remarks is that we don't expect tariff impact on OpEx. I think that was the genesis of your question on food and beverage?

Yes. Okay. Sorry about that.

That's okay. We don't expect an impact because it's really a sourcing question. Now are there certain things that you can only get from certain places? Absolutely. But the vast majority of things that would be most impactful, we can resource, and we're already on it now, so we don't expect much there.

In terms of retail, you can see the Q1 numbers. You can see in our press release where you can see everything else. Retail was essentially flat year-over-year, and that's coming off an absolutely incredible comp. So nothing really -- and frankly, coming off a prior year that had Super Bowl in it, which is a -- which was obviously a giant retail number. So nothing of note in retail to talk about. And lease terms vary. Not all over the place, but they vary a decent amount between base rent and percentage of turnover. So there's not a lot that you can infer from our lease revenues about the gross value of goods.

Okay. And just to be clear, yes, my question was kind of going forward on a tariff impact on the pricing of some of those items in the store. So you're not -- you haven't seen anything thus far in terms of price increases or hearing potential increases from your tenants in April or for the outlook?

We have not. I think that's going to come down to retailer by retailer. And those are really, at the end of the day, their decisions. I mean we're just -- we're the landlord effectively, and we do a great job managing our real estate, but we're not in there, obviously, making pricing decisions with them.

Operator, the next question will be the last one.

And our final question comes from Joe Stauff with Susquehanna.

Two quick questions, please, if I could, on Macau. Craig, I was just curious maybe on your observations on the competitive environment in Macau, Cotai, in particular. And whether or not you are seeing any impact from, say, the new hotel product recently launched from some of your competitors?

Sure. Thanks for the question. On the first one, I'll really reference back a bit to how I responded to David. It's a very competitive market. I think you've heard that from a number of our peers. As I said earlier, that competition manifests itself in many, many ways. The promotional environment is actually quite stable, but it's day-to-day, hand-to-hand combat in order to be competitive in that market. And I think that's true for everyone.

On the hotel product side, we continue to run full. We continue to have market share that we're very proud of. We are incredibly proud of the state of our assets. We keep them in tiptop shape, and we continue to run the best service levels in the market. So you're right, there is incremental product coming to market. That is absolutely the case. We, too, have been innovating with CapEx, not on the room side, but on -- in other amenities as we've talked about pretty extensively on this call. And I like our ability to be competitive there.

Okay. Well, thank you, operator, and thank you to all the participants on the call. We appreciate your interest in Wynn Resorts, and we look forward to talking to you again next quarter.

Thank you for participating on today's conference call. You may now disconnect.