PoolCorp forecasts annual profit below estimates on weak new equipment demand

Feb 19 (Reuters) - PoolCorp POOL.O forecast annual profit below Wall Street estimates on Thursday, hurt by weak demand for new equipment amid tariff-fueled price hikes.

Shares of the pool equipment distributor fell 7% in premarket trading following the results.

The Covington, Louisiana-based company expects fiscal 2026 profit between $10.85 and $11.15 per share, the midpoint of which is below analysts' estimates of $11.62, according to data compiled by LSEG.

PoolCorp's vendors hiked their prices following U.S. President Donald Trump's tariff policies, which prompted the company to raise overall product pricing to preserve its margin.

The company said its inventory balance increased 13% to $1.5 billion at December 31 from a year ago, primarily driven by increased purchasing ahead of price increases.

Its inventory balance also reflects increases from inflation, which includes vendor price hikes and the addition of new and acquired sales centers, the company said.

PoolCorp bills itself as the world's largest wholesale distributor of swimming pool supplies and equipment. It also sells irrigation and landscape products.

The company's total debt increased $249.1 million to $1.2 billion at December 31, primarily to fund its working capital needs and open market share repurchases of $341.1 million in 2025.

PoolCorp's adjusted profit fell to 84 cents per share in the quarter ended December 31, down from 97 cents a year ago. Analysts on average expected quarterly profit of 98 cents.

PoolCorp's fourth-quarter revenue fell to $982.2 million, compared with $987.5 million a year earlier. Analysts had expected the revenue to be $999.1 million.