Clouds Gather on the Backyard Waterfront
Troubles in the pool-supply business illustrate the inflation and inventory problems plaguing many industries.
A clean pool is a nice place to spend a steamy July day. It can also be an instructive economic indicator.
Demand for pool products soared during the pandemic as consumers spent more time at home and rediscovered the benefits of outdoor living. Retailers of chlorine tablets, pumps and other supplies were able to pass on higher costs to customers with little pushback. Business is no longer going quite so swimmingly. On July 13, pool-products retailer Leslie’s Inc. slashed its full-year adjusted earnings per share outlook after results in the period leading up to the pool season came in well short of expectations. The company’s shares have plummeted 40% since then. On July 20, Pool Corp., a distributor of pool products, also cut its full-year earnings guidance.