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BofA Downgrades Latham Group Citing Weak Pool Construction Market

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BofA Downgrades Latham Group Citing Weak Pool Construction Market

Latham Group (NASDAQ: SWIM), a prominent player in residential swimming pool construction, faced a setback as Bank of America downgraded its stock due to concerns over sluggish new pool construction and increased decrementals.

With the downgrade, SWIM’s stock plummeted by 23.78% during pre-market trading on Wednesday, settling at $2.50, marking an 11% dip below its 200-day simple moving average.

Bank of America revised its recommendation on Latham Group stock to Underperform, slashing the price target from $4.50 to $2.60.

In its 2024 guidance announcement, SWIM projected revenues between $490M and $520M, falling short of the consensus estimate of $533.09M. Similarly, adjusted EBITDA guidance ranged from $60M to $70M, representing an 8% to 35% decrease compared to previous expectations.

The downgrade stems from a sluggish start to 2024, subdued projections for new pool construction, operational challenges leading to deleverage, and constrained free cash flow.

Management anticipates a 15% year-over-year decline in new pool construction for 2024.

These developments contrast with the optimistic sentiment among some sell-side analysts, who maintain a Buy rating on SWIM with an average price target of $3.54.

Scott Rajeski, President and CEO, stated, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve.”

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Pool News coverage brought to you by Pool Magazine's own Marcus Packer. Marcus Packer is a 20 year pool industry veteran pool builder and pool service technician. In addition to being a swimming pool professional, Marcus has been a writer and long time contributor for Newsweek Magazine's home improvement section and more recently for Florida Travel + Life. Have a story idea or tip you'd like to share with Pool Magazine? Email [email protected] your story idea.

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New Poolsafe Removable Mesh Safety Fences

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Poolsafe LLC, offers new mesh, removable safety fencing designed to be installed around any pool shape or size. Uses patented, transparent, large-hole ClearGuard™ Mesh for better visibility into the pool area, while also blending the fence into backyard. Lockable, self-closing Triton™ gate features a curved top bar to help prevent climbing. Unique Tri-Pod Truss system keeps gate aligned with daily usage. Available in 4ft and 5ft heights, in black, brown, beige, or gray colors. 

https://poolsafe.com/
(888) 489-2282

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RicoRock® Offers New Temple Stone Firepit

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The newest addition to the Temple Stone series, this new firepit is made of attractive and safe pre-cast lightweight concrete that matches the latest in outdoor living décor. Roughly 18”-inches high, 76” long and 23” wide, the Temple Stone firepit makes it easy to create a gathering space in any backyard.  Hooks up to standard propane tanks.  Shown in limestone color.  Made in USA and available for immediate shipment.

www.ricorock.com or call (888) 717-3100.

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Marquis Celebrates 25 Years of Make-A-Wish Partnership

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LAS VEGAS, NV — December 3, 2025 — Marquis® Spas, a leader in luxury hot tubs and swim spas, is proud to celebrate the 25th anniversary of its partnership with Make-A-Wish®, a milestone that has transformed the lives of more than 1,250 children through the gift of hydrotherapy. Providing ongoing relief for symptoms attributable to many childhood illnesses and conditions.

The journey began in 2000, when Marquis granted its first wish for Andrea, a 15-year-old leukemia survivor. Today, Andrea is cancer-free and raising a family of her own. Her story illustrates the ongoing power of a hot tub to provide more than relaxation. It inspires healing, resilience, and family joy.

“For 25 years, our dealers have been at the heart of this program,” said Melinda Herber, Customer Experience Manager at Marquis, who manages program logistics. “Every wish is more than a hot tub delivery—it’s a beacon of renewed hope. This is about showing up for families when it matters most, and it’s part of what makes the Marquis retail network so special.”

While not the only hot tub manufacturer to partner with Make-A-Wish, the Marquis program stands out as a model for sustained commitment. Marquis dealers often develop long-term connections with wish families and fellow volunteers, while also benefiting from positive recognition and shared pride in making wishes come true.

As Marquis reflects on this 25-year legacy, the company continues to prioritize loyal partnerships, especially with retailers who share its values. “Joining the Marquis network means more than selling premium spas,” said Todd Shannon, Chief Revenue Officer. “It means being part of a brand that delivers lasting enjoyment, builds community trust, and demonstrates leadership through action.”

Josh Cowley, CEO of parent company May Manufacturing, is equally committed. “We believe that every wish granted reflects the heart of our company and our dealer network,” said Cowley. “We’re excited to continue this legacy and invite retailers who share our values to join Marquis in making an even broader impact in the years ahead.”

About Marquis
Marquis® has been manufacturing premium hot tubs and swim spas since 1980. With a commitment to craftsmanship, innovation, and community, Marquis partners with retailers across the globe to deliver wellness, relaxation, and joy. A subsidiary of May Manufacturing and proudly made in Las Vegas, NV.

About Make-A-Wish®
Make-A-Wish creates life-changing wishes for children with critical illnesses. Founded in Phoenix, Arizona, Make-A-Wish is the #1 most trusted nonprofit operating locally in all 50 states throughout the U.S. Together with generous donors, supporters, staff and more than 20,000 volunteers across the country, Make-A-Wish delivers hope and joy to children and their families when they need it most. Make-A-Wish aims to bring the power of wishing to every child with a critical illness because wish experiences can help improve emotional and physical health. Since 1980, Make-A-Wish has granted more than 615,000 wishes worldwide; more than 390,000 wishes in the U.S. and its territories alone. For more information about Make-A-Wish America, visit wish.org.

Media Contact:
Cody Meador
Director of Marketing
951-204-3427
[email protected]
[email protected]

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