Business
Pool Corporation Reports Second Quarter Results
Highlights Strong maintenance revenues contributed to Q2 2024 net sales of $1.8 billionSolid, seasonal gross margin of 30.0%, reflecting recurring revenue
About this update from Pool Corporation
[{"type":"text","content":"Highlights Strong maintenance revenues contributed to Q2 2024 net sales of $1.8 billionSolid, seasonal gross margin of 30.0%, reflecting recurring revenue contributionsOperating income of $271.5 million and operating margin of 15.3%Q2 2024 diluted EPS of $4.99 or $4.98 without tax benefits Confirms annual earnings guidance range of $11.05 - $11.45 per diluted share COVINGTON, La., July 25, 2024 (GLOBE NEWSWIRE) -- Pool Corporation (Nasdaq/GSM:POOL) today reported results for the second quarter of 2024. “The demand for maintenance products supported a solid quarter given the trend for lower consumer spending on high dollar discretionary items. Our second quarter net sales of $1.8 billion, down 5% from the second quarter of 2023, showed an improving trend from the decrease of 7% that we saw in the first quarter of 2024. Slightly better than expected sales in the last week of June improved our sales for the first half of the year to a 6% decline compared to the around 6.5% highlighted in our June 24th release. Gross margin of 30.0% reflects the structural improvements we are making in our business to expand margin, particularly considering the lower contribution from building materials product sales during the second quarter of 2024. Looking ahead, our team is focused on providing an exceptional customer experience and, with our strong balance sheet, we remain committed to our strategic growth investments, capacity creation efforts and innovation,” commented Peter D. Arvan, president and CEO. Second quarter ended June 30, 2024 compared to the second quarter ended June 30, 2023 Net sales decreased 5% in the second quarter of 2024 to $1.8 billion compared to $1.9 billion in the second quarter of 2023. Base business results approximated consolidated results for the period. Sales of recurring maintenance products, such as chemicals, parts and repair items, continued to perform well. Lower spending on discretionary products used in remodeling and new pool construction reflected consumer hesitancy. We saw an overall net 1% positive pricing impact on sales. In addition, sales benefited from an approximately 2% to 3% realization on product cost increases for equipment, offset by lower realized net price on other products and some commodity pricing headwinds. Gross profit decreased 7% to $530.1 million in the second quarter of 2024 from $56...