Pool Corp upgrades full year profit forecast as seasonal buying patterns return

(Reuters) - Pool Corp increased its full-year profit forecast on Thursday, as the company expects sales and gross margin trends to improve with a return to seasonal buying patterns.

The pool products distributor now sees diluted earnings per share for 2024 between $13.19 and $14.19, compared with its earlier forecast of $13.10 to $14.10 per share.

The Covington, Louisiana-based company bills itself as the world's largest wholesale distributor of swimming pool supplies and equipment. It also sells irrigation and landscape products.

"We remain confident in the growth opportunities available through continuous improved execution, strategic product and software additions, targeted expansion and selected acquisitions," said CEO Peter Arvan.

The company, however, missed Wall Street estimates for first quarter adjusted profit on back of softening demand for its pool equipment.

It reported an adjusted profit of $1.85 per share, missing analysts' average expectation of $1.91 per share for the quarter, according to LSEG data.

High interest rates and sticky inflation in the quarter affected new housing construction, impacting demand for the company's pool and landscaping products.

It reported net sales of $1.12 billion. Analysts on average, had expected it to post net sales of $1.13 billion.

(Reporting by Aatreyee Dasgupta and Abhinav Parmar in Bengaluru; Editing by Tasim Zahid)