Pool News
Pool Suppliers Revenue Way Up During Year 2 of Covid
Recently, there has been a surge in demand for pool services, thanks to the Covid-19 pandemic. As a result, pool suppliers and contractors continue to earn higher profits and revenues. One of the companies that greatly benefited from the increased demand is Pool Corp. Pool Corp (POOL) is a company that distributes pool equipment, among other supplies. The Louisiana-based company has experienced a significant rise in its market share this year.
| Metric | Q2 2020 Result | Wall Street’s Q2 2021 Consensus Estimate | Wall Street’s Projected Change |
|---|---|---|---|
| Revenue | $1.28 billion | $1.73 billion | 35% |
| Adjusted earnings per share (EPS) | $3.87 | $5.48 | 42% |
Increase in pool suppliers revenue due to pool demand
Pool Corp is, however, not the only company that is benefiting from this increased demand. Many pool companies have grown tremendously over the past year. This is because more homeowners were looking for ways to spice up their backyards amid the covid-19 movement restrictions. And this explains the reason for the high demand for pool services.
Remember, the global pandemic forced homeowners to enjoy their indoor/outdoor spaces. Consequently, the majority of individuals became more willing to spend on upgrading their outdoor spaces. In fact, statistics show that the number of inground pools built last year rose by 21% from 2019. In addition, according to MarketWatch, permits in warmer states like Florida rose by 30%.
There has never been such an abrupt and tremendous growth in the pool industry. 2020 was undoubtedly an industry changer for us. The last time the pool industry experienced such growth was in 1983, and it wasn’t this much.
PHTA spokesperson Janay Rickwalder
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The increased demand was good for most pool distributors and suppliers like Pool Corp. Pool companies saw a tremendous increase in their revenues and profits. In particular, Pool Corp’s earnings tripled. On the other hand, another pool supply company, Leslie’s, saw a 52% increase in sales last year.
Owner of Budd’s Pools & Spas, Randy Budd, says, “We have never seen such demand for our pool construction services as we did last year.”
Demand for Pool costruction and services
Nonetheless, it is essential to note that the pandemic is not the only reason for the surge in demand for pool services. According to the Consumer News and Business Channel (CNBC), the demand for pool construction services has also risen because more Americans are moving to warmer regions and urban areas.
Although pool suppliers have greatly benefited from the high demand for pool services, they are experiencing a major problem; fewer swimming pool supplies. Currently, there are less swimming pool supplies like chlorine. Remember, the primary chlorine tablet manufacturer experienced great loss from the fire in Louisiana. Thus, it is hard to find chlorine tablets. And it forces pool suppliers to raise their chlorine tablet prices since the demand is still high.
Budd says, “There is a shortage of almost all pool supplies in the industry; the demand is constantly rising.”
Some pool suppliers like St. Cyr Pool & Spa in Middleton, Mass, have increased their chlorine prices by 50%. So, pool experts are now advising pool owners to consider using other pool sanitation systems. Examples of these sanitation systems include UV and Ozone systems.
Chad Moentenich, Showroom manager at Prestige Pools & Spas, says that they have never received a lot of calls like this year. He says, “Homeowners are looking for all kinds of features to make their yards more functional. Spas, hot tubs, aboveground pools, inground pools are therefore in high demand at the moment.
Chad says that it often takes roughly six to eight months to complete building an inground pool. But pool professionals can no longer deliver within this construction period. Pool construction is now taking longer since pool contractors are extremely busy.
Increased revenue in the pool industry
At the beginning of the covid-19 pandemic, pool industry veterans were afraid that business would go down. This was because of the recession that went down in 2008. Fortunately, this incidence did not reoccur last year. In fact, businesses became bigger and better. Most people are now working from home. So, they are looking for different ways to make their stay worthwhile.
Furthermore, since individuals couldn’t go for their yearly vacations anymore, they sought to create mini staycations in their yards. Besides, adding a pool to your yard helps you keep your children occupied throughout the entire summer. Nevertheless, swimming pools are currently getting reopened. But this is not expected to tamper with the increased demand for pool services.