David John Manthey's questions to POOL (POOL) leadership • Q3 2025
Question
David John Manthey asked about the weakness in chemical sales, requesting a breakdown of inflation/deflation across chemicals, building materials, and equipment, and whether the chemical trend represents a recent change. He also sought clarification on the SG&A growth algorithm, specifically how the 60-80% of top-line growth rule applies in a year of mid-single-digit growth, considering incentive compensation reinstatement.
Answer
President and CEO Peter Arvan explained that chemical deflation is primarily in the sanitizer category (Trichlor), which he considers a slight pressure rather than an alarming trend, noting overall chemical demand is stable. He described building materials inflation as slight and equipment pricing as consistent with recent years. SVP and CFO Melanie Hart confirmed the SG&A model remains intact, with initial recovery of variable expenses (drivers, warehouse personnel) and incentive compensation tracking sales growth.