Pool Corporation recently announced that it has revised its 2024 outlook due to challenging economic conditions that have affected consumer discretionary spending, leading to a decrease in demand for pool products. This revision has impacted the company’s projected earnings per share (EPS) for 2024, which is now anticipated to be between $11.04 and $11.44, down from the previous forecast of $13.19 to $14.19. The current quarter EPS is expected to be between $4.85 and $4.95, below analysts’ expectations.
Despite these challenges, CEO Peter Arvan remains optimistic about the industry’s long-term growth potential, stating that the demand for swimming pools and outdoor living projects remains strong. In addition to the decline in demand for new pool construction activity this year, Pool Corporation also projects a decrease of up to 15% in remodeling projects compared to the previous estimate of flat to 10% lower.
The revised outlook has had a significant impact on Pool Corporation’s stock price, which fell by about 8% during intraday trading on Tuesday to reach $309.47, marking its lowest level since October. The company’s competitor, Leslie’s, also experienced a more than 4% decline in its stock price as well.