MGM Grand has a broad portfolio of premium (Aria, The Cosmopolitan, MGM, and Bellagio) and mass properties (Luxor, Excalibur, New York, etc). Its Las Vegas Strip Resorts reporting segment showed a -8% decline in room-rate, a -5% decline in casino revenue, and a decline in food & beverage sales. Within the portfolio, stronger trends at its premium-end properties were offset by declines in the remainder, i.e. their rate of decline was worse.

As we previewed last week, high-end consumer spending in the US accelerated during Q3, which drove better retail sales for September and which we see in LVMH’s much better organic revenue growth for the quarter. Moreover, we also take Dollar Tree’s reiteration of its guidance and **Domino’**s very strong Q3 US Comps (+5.2%) as added evidence that there has not been a material degradation in spending by the less-affluent (despite market fears that there was and some data pointing to degradation).