:max_bytes(150000):strip_icc()/GettyImages-2158491732-d6887a9eeaef493d8482dbc0c866fa51.jpg "Pool Corporation Slashes Outlook as Economic Conditions Hurt Sales")
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Key Takeaways
- Pool Corporation cut its 2024 outlook as tough economic conditions cut into consumer discretionary spending, reducing demand.
- The provider of pool products said sales are down about 6.5% so far this year.
- Pool Corporation believes new pool construction activity could slide as much as 15% to 20% this year.
Pool Corporation (POOL) shares sank in intraday trading Tuesday, a day after the distributor of pool products slashed its guidance as economic conditions have led to a pullback in consumer discretionary spending and cut into demand.
The company warned that sales are down about 6.5% so far this year, and it expects full-year sales to be in a “similar range.” Pool Corporation revised its outlook to reflect that, now anticipating 2024 earnings per share (EPS) of $11.04 to $11.44, down from its earlier outlook of $13.19 to $14.19. It sees current-quarter EPS of $4.85 to $4.95, below analysts’ forecasts.
Pool Corporation said it now believes new pool construction activity could drop 15% to 20% from 2023. It expects remodeling to fall as much as 15%, versus its earlier forecast of flat to 10% lower.
CEO Says Desire for Swimming Pools Still ‘Remains Strong’
However, Chief Executive Officer (CEO) Peter Arvan remained optimistic, arguing that “we continue to believe that the desire for swimming pools and outdoor living projects remains strong, which allows our industry to grow over time as new pools are added to the installed base every year.”
Shares of Pool Corporation sank about 8% as of 11:10 a.m. ET Tuesday to $309.47, their lowest level since October. Shares of rival Leslie’s (LESL) were down more than 4%.