Shares of Home Depot Inc. ((HD) are trading lower Tuesday afternoon following Pool Corporation's (NASDAQ:POOL) announcement of revised 2024 earnings guidance, which highlights a significant slowdown in discretionary pool spending.
What's Going On: Pool Corporation, the world's largest wholesale distributor of swimming pool and related backyard products, said demand for new pool construction and remodeling activities has weakened considerably due to the challenging macroeconomic environment. The company expects new pool construction and remodel activity to decline by 15% to 20% in 2024, a notable drop that has affected its year-to-date net sales.
As a result of these trends, Pool Corporation has lowered its annual earnings guidance. The company now projects earnings per share in the range of $11.04 to $11.44, down from the previous estimate of $13.19 to $14.19.
This revision reflects lower expected sales due to reduced discretionary spending on new pool construction and remodel projects. Pool Corporation will release its second-quarter 2024 earnings results on July 25, 2024, offering further insights into its performance and outlook.
The news has had a ripple effect on related sectors, impacting Home Depot, a major supplier of home improvement and building materials.
HD Price Action: Home Depot's shares were down by 3.71% at $337.85 according to Benzinga Pro.
Photo via Shutterstock.
