Pool Corporation reported a decrease in financial performance for the first quarter of 2025, with net sales of $1,071.5 million, down 4% from $1,120.8 million in the same period of 2024. The decline in sales was attributed to a combination of factors, including one less selling day, lower sales volumes of discretionary products, and adverse weather conditions impacting early season sales. Gross profit also fell by 8% to $312.4 million, resulting in a gross margin of 29.2%, down from 30.2% in the prior year. The decrease in gross margin was partially offset by improved pricing strategies and supply chain initiatives.
Operating income for the quarter decreased significantly by 29% to $77.5 million, with an operating margin of 7.2%, compared to 9.7% in the first quarter of 2024. Selling and administrative expenses rose by 2% to $234.8 million, reflecting inflationary pressures and the expansion of the sales center network. The company reported net income of $53.5 million, a decrease of 32% from $78.9 million in the previous year, leading to earnings per diluted share of $1.42, down from $2.04.
In terms of operational developments, Pool Corporation maintained a total of 449 sales centers across North America, Europe, and Australia, with approximately 95% of net sales generated from North American operations. The company has also made strategic acquisitions, including the distribution assets of Swimline Distributors, Inc. and Shoreline Pool Distribution in 2024, which are expected to enhance its market presence. The company’s inventory levels decreased by 2% year-over-year, reflecting improved inventory management practices.
Looking ahead, Pool Corporation anticipates that sales for the full year of 2025 will be flat to slightly positive compared to 2024. The company expects gross margins to align with the previous year's levels, supported by pricing optimization and supply chain initiatives. Operating expenses are projected to increase by approximately 3% compared to 2024. The effective tax rate for 2025 is expected to be around 25%, excluding the impact of tax benefits from share-based payments. The company plans to continue utilizing cash for dividends and opportunistic share repurchases, with $290.8 million remaining available under its current share repurchase program as of April 24, 2025.
About POOL CORP
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