Latham Group, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net sales decreasing by 10.2% to $508.5 million, down from $566.5 million in 2023. The company also experienced a net loss of $17.9 million, compared to a loss of $2.4 million in the previous year, marking a net loss margin of 3.5%. Adjusted EBITDA fell to $80.2 million from $88.0 million, reflecting ongoing macroeconomic challenges that have impacted consumer spending and demand for in-ground residential pools.
The decrease in sales was primarily attributed to a $55.1 million drop in volume, driven by soft industry conditions, alongside a $2.9 million decline in pricing. Notably, the in-ground swimming pool segment saw a $38.6 million reduction in sales, while liners and covers also contributed to the overall decline. Despite these challenges, Latham Group continues to focus on driving adoption of fiberglass pools, which have shown resilience compared to traditional concrete pools.
Strategically, Latham Group completed the acquisition of Coverstar Central, LLC, an exclusive dealer of automatic safety covers, for $64.5 million in August 2024. This acquisition is expected to enhance margins and accelerate sales growth through a unified marketing strategy. The company has also been investing in digital transformation and marketing initiatives to strengthen its market position, particularly in the Sand States, which account for a significant portion of pool installations in the U.S.
Operationally, Latham Group employed approximately 1,800 individuals across 30 locations, maintaining a strong distribution network with over 475 distributor branch locations. The company has implemented cost reduction programs and lean manufacturing initiatives to improve efficiency and reduce its cost base. However, the overall economic environment remains a concern, with high interest rates and inflation potentially continuing to impact consumer demand for pool products in the near future. Looking ahead, Latham Group aims to capture market share as conditions improve, while continuing to focus on innovation and strategic partnerships to drive growth.
About Latham Group, Inc.
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