Investing.com – Pool Corporation (NASDAQ:) fell more than 11% in after-hours trading on Monday as the company revised its 2024 earnings guidance amid slower demand during the pool season.
So far this year, Pool Corporation's sales have been trending downward by 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, resulting in an 11% decline in building materials sales 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 expectations for the second quarter and fiscal 2024. As a result, the company has reduced its projected full-year diluted EPS range from $11.04 to $11.44 per share, down from $13.19 to $14.19.
Peter D. Arvan, president and CEO of Pool Corporation, noted that recent pool permit data indicates continued weak demand for new pool construction, and with the peak sales season nearly over, the company now It anticipates a 15% to 20% decline in new pool construction activity for the year, and remodeling activity could decline by up to 15%.
Arvan remained positive, stating: “Despite recent trends curbing discretionary spending, we continue to believe that the desire for pools and outdoor living projects remains strong, allowing our industry to grow over time as that new pools are added to the installed base every year. . “We are confident that strategic investments in our business position us for growth emerging from this economic cycle and allow us to continue to gain market share by delivering unmatched value to our customers and suppliers.”
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