Gregory Badishkanian's questions to Latham Group Inc (SWIM) leadership • Q3 2024
Question
Scott Stringer, on behalf of Gregory Badishkanian, asked for the key drivers and detractors for Q4 gross margin. He also questioned whether the growth in cover sales was solely from the Coverstar acquisition or if other market dynamics were at play.
Answer
CFO Oliver Gloe detailed the Q4 gross margin outlook, citing a headwind from lower volume that is almost entirely offset by lean/value engineering initiatives, with further tailwinds from supplier optimization. Gloe confirmed that the positive growth in the covers segment was driven by the Coverstar Central acquisition, with integration tracking to expectations.