Here's Why Pool Corp. Stock Sank in the First Half of 2024
Wholesale swimming products distributor Pool Corp.'s (NASDAQ: POOL) shares declined by 22.9% in the first half of 2024, according to data provided by S&P Global Market Intelligence.
Moreover, the stock declined 9% after the company updated the market on the swimming pool season and promptly said new pool construction activity in 2024 could be down 15% to 20%. In addition, management now believes remodeling activity could decline by as much as 15% in 2024 -- a downgrade in expectations compared to a previous estimate for flat growth to a decline of 10%.
While Pool Corp.'s maintenance-related products have held up quite well -- equipment sales were down just 2% in the first half -- its revenue from products related to discretionary spending is down significantly. In a nutshell, homeowners are seeing challenging housing market conditions and are holding off on "spending on big ticket items like swimming pools and outdoor living projects," according to the update.
Source Fool.com