Latham Group, Inc. reported a slight increase in net sales for the fiscal quarter ending March 29, 2025, reaching $111.4 million, up 0.7% from $110.6 million in the same period last year. The company experienced a decrease in net loss, which narrowed to $6.0 million from $7.9 million, resulting in a net loss margin of 5.4%. This improvement in profitability was attributed to a combination of increased sales volume, particularly in pool covers, and operational efficiencies stemming from recent acquisitions, including Coverstar Central, which was completed in August 2024.
The company’s cost of sales decreased by 1.9% to $78.5 million, contributing to a gross margin increase to 29.5%, up from 27.7% in the prior year. This improvement was driven by lean manufacturing initiatives and the integration of Coverstar Central, which enhanced margins in the automatic safety cover product line. However, selling, general, and administrative expenses rose by 16.6% to $30.6 million, reflecting increased investments in sales and marketing to support future growth.
Latham Group's operational metrics showed a significant increase in trade receivables, which rose by $52.6 million, indicating a timing difference in sales. The company also reported a $9.6 million increase in inventories, driven by pre-purchasing strategies in response to global trade conditions. The total employee headcount remains approximately 1,800 across 30 locations, supporting the company’s extensive manufacturing and distribution network.
Looking ahead, Latham Group remains cautious about new pool starts in 2025, projecting them to align with 2024 levels. The company is actively monitoring macroeconomic conditions, including trade tariffs and consumer confidence, which could impact operations. Despite these challenges, Latham Group is confident in its ability to manage raw material costs through strategic purchasing and has implemented targeted price increases on certain products to mitigate potential tariff impacts. The company continues to focus on product innovation and operational efficiencies as part of its long-term growth strategy.
About Latham Group, Inc.
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