Investing.com – Pool Corporation (NASDAQ:) fell over 11% in after-hours deals on Monday as the company revised its 2024 earnings guidance amid slower demand during the swimming pool season.
For the year-to-date period, Pool Corporation’s sales have been trending down approximately 6.5% compared to the same period in 2023. This is largely due to cautious consumer spending on big-ticket items like swimming pools and outdoor living projects, resulting in a decline of 11% in building materials sales for the year compared to the same period in 2023.
Given the significance of the second quarter to the company’s full-year results, Pool Corporation has revised its expectations for the second quarter and the 2024 fiscal year. As a result, the company has lowered its projected diluted EPS range for the full year to $11.04 to $11.44 per share from $13.19 to $14.19.
Peter D. Arvan, President and CEO of Pool Corporation, noted that recent pool permit data indicates a consistent weak demand for new pool construction, and with the peak selling season nearing completion, the company now anticipates a decline of 15% to 20% in new pool construction activity for the year, with remodel activity potentially decreasing by as much as 15%.
Arvan remained positive, stating “Despite the recent trends dampening discretionary spending, 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. We are confident that the strategic investments in our business position us for growth coming out of this economic cycle and are allowing us to continue to gain market share by providing unmatched value to our customers and suppliers.”