Pool Corporation Reports 4% Decline in Net Sales for Fiscal Year 2024

Pool Corporation (POOL), the largest wholesale distributor of swimming pool supplies and related leisure products, reported a 4% decline in net sales for the fiscal year ending December 31, 2024, totaling $5.31 billion, down from $5.54 billion in 2023. The decrease was attributed primarily to a reduction in discretionary spending on new pool construction and renovations, which was impacted by unfavorable macroeconomic conditions. Despite this decline, maintenance-related sales remained stable, reflecting steady demand for non-discretionary products, particularly pool chemicals, which saw a 2% increase in sales.

Gross profit for the year was $1.58 billion, a 5% decrease from $1.66 billion in 2023, resulting in a gross margin of 29.7%, down from 30.0% the previous year. The decline in gross margin was influenced by higher inventory costs and a less favorable product mix, although pricing optimization efforts and vendor incentives provided some offset. Operating expenses increased by 5% to $958.1 million, driven by costs associated with network expansion and technology initiatives, leading to a 17% decrease in operating income to $617.2 million.

In terms of strategic developments, Pool Corporation made several acquisitions in 2024, including Swimline Distributors and Shoreline Pool Distribution, which added new locations in Georgia and Mississippi, respectively. The company continues to focus on expanding its geographic footprint and product offerings, with plans to open 8 to 10 new sales centers in 2025. As of December 31, 2024, Pool Corporation operated 448 sales centers across North America, Europe, and Australia, serving approximately 125,000 customers.

The company reported a net income of $434.3 million for 2024, a 17% decrease from $523.2 million in 2023, resulting in earnings per diluted share of $11.30, down from $13.35. Pool Corporation's cash flow from operations was $659.2 million, which was impacted by inventory reduction efforts and lower net income. The company also returned value to shareholders through share repurchases totaling $306.3 million and cash dividends of $179.6 million during the year.

Looking ahead, Pool Corporation anticipates flat to low single-digit sales growth for 2025, driven by sustained demand for maintenance products and a stabilization in discretionary spending. The company expects to maintain its gross margin in the range of 29.7% to 30.0% and plans to continue investing in technology and operational efficiencies. The outlook remains cautious, with potential impacts from economic conditions, interest rates, and weather patterns influencing future performance.