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LATHAM, N.Y. - Latham Group , Inc. (NASDAQ:SWIM), the largest designer and manufacturer of in-ground residential swimming pools in North America, Australia, and New Zealand, saw its shares jump 14.5% after reporting fourth quarter revenue that beat analyst expectations, despite ongoing challenges in the pool industry.
The company reported Q4 revenue of $87.27 million, surpassing the consensus estimate of $85.17 million. However, Latham posted a loss per share of $0.25, which was wider than the analyst estimate for a loss of $0.11 per share. Revenue declined 4% YoY from $90.9 million in Q4 2023.
For the full year 2024, Latham reported net sales of $508.5 million, down 10.2% from $566.5 million in 2023. The company attributed the decline to lower sales volume amid soft industry conditions, with U.S. pool starts estimated to have fallen approximately 15% in 2024.
Despite the challenging environment, Latham’s President and CEO Scott Rajeski highlighted the company’s market share gains and margin expansion. "Our in-ground pool sales continued to outperform the U.S. in-ground pool market, we succeeded in expanding margins despite lower utilization, and we made investments that have positioned the Company for sales growth and increased profitability in 2025 and beyond," Rajeski stated.
Latham provided guidance for fiscal year 2025, projecting net sales between $535 million and $565 million, representing 8% growth at the midpoint. The company also expects adjusted EBITDA of $90 million to $100 million, a 19% increase at the midpoint.
The strong market reaction suggests investors are optimistic about Latham’s ability to navigate industry headwinds and capitalize on growth opportunities in fiberglass pools and automatic safety covers.
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