Weak Economic Conditions Cause Pool Corporation to Decrease Forecasts for Sales

Pool Corporation, a distributor of pool products, recently cut its 2024 outlook due to tough economic conditions impacting consumer discretionary spending and reducing demand. Sales have decreased by about 6.5% this year, prompting the company to revise its earnings per share (EPS) outlook downward. The company now expects a full-year EPS of $11.04 to $11.44, compared to the previous forecast of $13.19 to $14.19.

Additionally, Pool Corporation anticipates a 15% to 20% decrease in new pool construction activity for the year, along with a potential 15% decline in remodeling activity. Despite these challenges, CEO Peter Arvan remains optimistic about the industry’s long-term prospects, stating that the desire for swimming pools and outdoor living projects continues to be strong.

Nevertheless, shares of Pool Corporation fell about 8% in intraday trading on Tuesday to $309.47, marking their lowest level since October. Similarly, shares of competitor Leslie’s were down more than 4% at the same time. The market reaction reflects the impact of the company’s revised outlook on investor sentiment.