Q2 2024 Pool Corp Earnings Call Transcript
Key Points
- Pool Corp (POOL) generated $1.8 billion in net sales during the second quarter, reflecting solid performance in the maintenance portion of the business.
- The company has made significant progress in strategic areas, including the expansion of its sales center network and the adoption of its Pool360 tool, which reached its highest level of 14.5% of sales.
- Private label chemical sales grew at double-digit rates, outpacing the growth of the rest of the chemical portfolio.
- Pool Corp (POOL) reported strong cash flow, allowing for $173 million to be returned to shareholders through dividends and share repurchases.
- The company is leveraging its widespread integrated distribution network to provide exceptional service and value-added tools to its customers, enhancing its leadership position in the industry.
- Total sales in the second quarter declined by 5% compared to the same period last year.
- Gross margin for the second quarter finished at 30%, down 60 basis points from the prior year, impacted by lower levels of higher-margin building material sales.
- Operating income decreased by 17% compared to the prior year, reflecting continued strategic investment in technology and new sales center openings.
- Sales in key markets such as Texas, California, and Arizona experienced declines due to unfavorable weather conditions and lower new pool construction and remodel activities.
- The European market remains challenged with tough consumer sentiment and was further impacted by cold and rainy weather, leading to an 11% decline in sales.
Please stand by for streaming text.
Good day and welcome to the Pool Corporation Second Quarter 2024 conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Melanie Hart, Vice President and Chief Financial Officer. Please go ahead.
Welcome to our second quarter 2024 earnings conference call. Our discussion, comments and responses to questions today may include forward-looking statements, including management's outlook for 2024 and actual results may differ materially from those discussed today.
Information regarding the factors and variables that could cause actual results differ from projected results are discussed in our 10 K. In addition, we may make references to non-GAAP financial measures in our comments. A description and reconciliation of our net income are included in our press release are posted to our corporate website in the Investor Relations section.
As we
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