Pool Corporation ( POOL ) shares are tumbling today after the company after the company cut its FY24 EPS guidance.

Yesterday, the company cut its EPS outlook to $11.04 – $11.44 (from $13.19 – $14.19) vs. estimate of $13.15.

Moreover, Pool projects new pool units to decline by 15% to 20% in 2024, and remodeling activity to decrease by up to 15%, vs prior guidance of flat to down 10% from 2023.

Given the seasonal nature of business, Pool anticipates that the lower sales levels will have a more pronounced impact on its second-quarter FY24 results, with EPS projected to be $4.85-$4.95 vs. consensus of $5.85.

Pool also issued a warning that discretionary pool spending is to be hampered by the macroeconomic environment.

Year-to-date, the company’s sales are down about 6.5% Y/Y, with discretionary components, affected by cautious consumer spending on big-ticket items like pools and outdoor projects, saw an 11% decline in building materials sales.

Peter D. Arvan, president and CEO, stated, “Despite the recent trends dampening discretionary spending, we continue to believe that the desire for swimming pools and outdoor living projects remains strong, which allows our industry to grow over time as new pools are added to the installed base every year.”

Pool is scheduled to release its second quarter 2024 earnings results before the market opens on July 25, 2024.

Last month, the company’s Board of Directors authorized an increase in the share repurchase program to $600 million. As of May 1, 2024, this authorization adds $316.2 million to the $283.8 million remaining under the existing share repurchase program.

The company also announced recently that the Board has declared a quarterly cash dividend of $1.20 per share, marking a 9% increase from the previous quarterly dividend of $1.10 per share.

Price Action: POOL shares are down 6.42% at $316.21 at the last check Tuesday.