Investing.com – Pool Corporation (NASDAQ:) fell more than 11% in after-hours trading Monday as the company revised its 2024 earnings guidance amid slowing demand during pool season.
For the year-to-date period, Pool Corporation’s sales are down approximately 6.5% compared to the same period in 2023. This is largely due to cautious consumer spending on big-ticket items such as swimming pools and outdoor living projects, which led to lower sales of building materials By 11% for the year compared to the same period in 2023.
Given the importance of the second quarter to the company’s full-year results, Pool Corporation has revised its outlook for the second quarter and fiscal year 2024. As a result, the company has lowered its expected full-year diluted EPS range to $11.04 to $11.44 per share from $13.19 to $14.19.
Peter D. noted. Arfan, President and CEO of Pool Corporation, noted that recent pool permit data indicates continued weak demand for new pool construction, and with the peak selling season drawing to a close, the company now expects a 15% to 20% decline in pool construction activity in the year. Swimming pool is new for this year, with redesign activity likely to decrease by up to 15%.
Arvan remained positive, saying, “Despite recent trends reducing discretionary spending, we continue to believe the desire for pools and outdoor living projects remains strong, allowing our industry to grow over time as new pools are added to the installed base.” Every year, we are confident that strategic investments in our business will enable us to grow beyond this economic cycle and allow us to continue to gain market share by providing unparalleled value to our customers and suppliers.