Ethan on for Trey Grooms's questions to Pool Corp (POOL) leadership • Q1 2025
Question
Representing Trey Grooms, Ethan asked if tariff-driven price increases could cause demand destruction, particularly on the discretionary R&R or new build side. He also inquired about any changes to the operating expense cadence for the year and how OpEx might be flexed.
Answer
CEO Peter Arvan opined that the price increases are unlikely to cause material demand destruction, as they represent a small fraction of a total new pool project's cost and most equipment sales are for non-discretionary repairs. He believes broader equity market performance is a more significant factor for new construction demand. CFO Melanie M. Hart confirmed no real change to the OpEx cadence but reiterated that variable expenses and incentive compensation would be managed in line with top-line performance.