Andrew (Analyst)'s questions to Hayward Holdings Inc (HAYW) leadership • Q3 2024
Question
Andrew (Analyst) asked about the drivers of the gross margin difference between North America and Europe, and whether European growth would be a drag on consolidated margins. He also inquired about the sustainability of the 6% price increase seen in North America.
Answer
CEO Kevin Holleran attributed strong margins to price/cost neutrality, normalized discounts, favorable regional mix, and continuous improvement initiatives. CFO Eifion Jones noted a minor inventory adjustment impacted European margins but expects a Q4 recovery. Jones explained the 6% North American price realization was a combination of year-over-year increases, normalized discounts compared to the prior year, and a small benefit from the new 2025 season price increase.