Pool Corporation (POOL) faces revenue decline due to industry challenges, but displays resilience in pricing.

From Yahoo Finance: 2025-05-07 11:47:00

Pool Corporation (POOL) shares were trading at $291.33 as of April 28th with trailing and forward P/E ratios of 27.28 and 25.19 respectively. Despite a prolonged correction in its business fundamentals, the company posted a 4.4% revenue decline in Q1 2025, marking the ninth consecutive quarter of negative growth.

The slowdown is attributed to regional headwinds, macroeconomic pressures, and policy-related volatility, affecting markets like Texas and Florida differently. Rising costs of new pool construction, driven by tariffs and labor expenses, add pressure to the industry, impacting decision-making for major expenditures like pool projects or remodels.

Approximately 84% of Pool Corp’s revenues come from non-discretionary maintenance and repair products, essential for pool owners. The company has demonstrated pricing power in passing along supplier cost increases, preserving margins through pricing adjustments. Despite challenges, Pool Corp’s strong competitive positioning and distribution scale position it for long-term resilience once the market stabilizes.

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Read more at Yahoo Finance: Pool Corporation (POOL): A Bull Case Theory