Pool Corp. Sinks More Than 10% After Hours After Pool Wholesaler Releases Downbeat Guidance
$Pool Corp (POOL.US)$ saw its stock go more than 10% down the drain after hours Monday after the pool wholesaler lowered its guidance for Q2 and the year as a whole.
POOL fell 11.2% to $300 shortly before 5:15 p.m. ET after the company issued a downbeat forecast after the bell.
"The most recent pool-permit data suggests persistently weak demand for new-pool construction," company CEO and President Peter Arvan said in releasing the guidance. "With the peak selling season almost complete, we now believe that new-pool construction activity could be down 15% to 20% for the year, with remodel activity down as much as 15%."
In a statement, the company blamed "cautious consumer spending on big-ticket items like swimming pools and outdoor-living projects."
POOL said that as a result, "year-to-date net sales -- although sequentially better than Q1 -- are trending down around 6.5%; full-year 2024 net sales are now expected to be in a similar range."
As such, the company lowered its guidance for Q2 earnings per diluted share to a $4.85-to-$4.95 range. And for 2024 as a whole, Pool Corp. guided EPS to $11.04 to $11.44, down from a previously projected $13.19 to$14.19.
The company added that it plans to release actual Q2 numbers before the bell on July 25.
Longer term, Arvan said that "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."
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