STRA - Pool Corp Stock Declines on Weak Demand & Macro Woes | Benzinga
Pool Corporation (NASDAQ: POOL) recently issued a business update for the swimming pool season from late May to early June 2024. The company reported weak demand for new pool construction and emphasized the negative impact of the macroeconomic environment on discretionary pool spending. Consequently, the company lowered its 2024 earnings guidance, anticipating persistent sluggish performance for the rest of the year. Following announcements, the stock dropped 10.9% during after-hours trading on June 24.
Business Updates
Year to date, the company's sales are trending down approximately 6.5% compared with the same period in 2023. The discretionary components of the business (heavily influenced by general economic conditions) have struggled due to cautious consumer spending on expensive items like swimming pools and outdoor living projects. This paved the path for an 11% year-over-year drop in building materials sales.
With the peak selling season almost complete, the company anticipates new pool construction activity to decline 15-20% year over year. The company expects remodel activity to fall approximately 15% in 2024 compared with the previous projection of flat to down 10% year over year.