Latham Group Swims Against Headwinds, Reports Steep Revenue & Income Drop
Ticker: SWIM · Form: 10-Q · Filed: Aug 6, 2025 · CIK: 1833197
| Field | Detail |
|---|---|
| Company | Latham Group, Inc. (SWIM) |
| Form Type | 10-Q |
| Filed Date | Aug 6, 2025 |
| Risk Level | high |
| Sentiment | bearish |
Sentiment: bearish
Topics: Swimming Pools, Consumer Discretionary, Q2 Earnings, Revenue Decline, Net Loss, Home Improvement, Macroeconomic Headwinds
Related Tickers: SWIM, POOL, LEGR
TL;DR
**SWIM is sinking fast; sell before it goes under.**
AI Summary
Latham Group, Inc. reported a significant decline in revenue and net income for the three and six months ended June 28, 2025. For the three months, revenue decreased by $25.3 million, or 15.1%, to $142.0 million compared to $167.3 million in the prior year period. Net income for the quarter plummeted by $14.1 million, or 100.0%, resulting in a net loss of $0.0 million, down from a net income of $14.1 million. The six-month period saw revenue drop by $45.6 million, or 14.3%, to $273.0 million from $318.6 million. Net income for the six months decreased by $22.5 million, or 100.0%, leading to a net loss of $0.0 million, compared to a net income of $22.5 million in the previous year. The company's strategic outlook is challenged by reduced consumer spending on discretionary items like swimming pools, impacting sales across its In-Ground Swimming Pools, Liners, and Covers segments. Risks include continued macroeconomic headwinds and potential inventory adjustments by dealers.
Why It Matters
Latham Group's substantial revenue and net income declines signal a challenging environment for the discretionary consumer goods market, particularly for big-ticket items like swimming pools. This performance could impact investor confidence, potentially leading to further stock price volatility for SWIM. Employees might face job insecurity or reduced bonuses if the downturn persists, while customers could see pricing adjustments or product availability shifts. In the broader market, this reflects a tightening of consumer wallets, potentially affecting other home improvement and luxury goods companies, intensifying competitive pressures within the pool industry.
Risk Assessment
Risk Level: high — The risk level is high due to the 15.1% revenue decrease for the quarter and a 100.0% decline in net income, resulting in a net loss of $0.0 million for both the three and six months ended June 28, 2025. This significant financial deterioration indicates severe operational and market challenges, with no profit generated in the current period.
Analyst Insight
Investors should consider divesting their shares in Latham Group, Inc. given the severe decline in revenue and net income, which indicates a challenging market for discretionary consumer spending. Monitor macroeconomic indicators and consumer confidence for any signs of recovery before reconsidering an investment.
Financial Highlights
- revenue
- $142.0M
- net Income
- $0.0M
- revenue Growth
- -15.1%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| In-Ground Swimming Pools | $115,764,839 | -15.1% |
| Liners | $116,536,129 | -15.1% |
| Covers |
Key Numbers
- $142.0M — Q2 2025 Revenue (Decreased 15.1% from $167.3M in Q2 2024)
- $0.0M — Q2 2025 Net Income (100% decrease from $14.1M in Q2 2024, indicating a net loss)
- $273.0M — H1 2025 Revenue (Decreased 14.3% from $318.6M in H1 2024)
- $0.0M — H1 2025 Net Income (100% decrease from $22.5M in H1 2024, indicating a net loss)
- 15.1% — Q2 Revenue Decline (Significant year-over-year drop for the three months ended June 28, 2025)
Key Players & Entities
- Latham Group, Inc. (company) — filer of the 10-Q
- $142.0 million (dollar_amount) — revenue for the three months ended June 28, 2025
- $167.3 million (dollar_amount) — revenue for the three months ended June 29, 2024
- $25.3 million (dollar_amount) — decrease in revenue for the three months ended June 28, 2025
- 15.1% (percentage) — percentage decrease in revenue for the three months ended June 28, 2025
- $0.0 million (dollar_amount) — net income for the three and six months ended June 28, 2025
- $14.1 million (dollar_amount) — net income for the three months ended June 29, 2024
- 100.0% (percentage) — percentage decrease in net income for the three and six months ended June 28, 2025
- $273.0 million (dollar_amount) — revenue for the six months ended June 28, 2025
- $318.6 million (dollar_amount) — revenue for the six months ended June 29, 2024
FAQ
What were Latham Group's revenues for the second quarter of 2025?
Latham Group, Inc. reported revenues of $142.0 million for the three months ended June 28, 2025, a decrease of $25.3 million or 15.1% compared to $167.3 million in the same period last year.
Did Latham Group achieve a net profit in Q2 2025?
No, Latham Group, Inc. did not achieve a net profit in Q2 2025. The company reported a net income of $0.0 million for the three months ended June 28, 2025, representing a 100.0% decrease from the $14.1 million net income in the prior year period.
How did Latham Group's year-to-date revenue compare to the previous year?
For the six months ended June 28, 2025, Latham Group, Inc.'s revenue was $273.0 million, a decrease of $45.6 million or 14.3% compared to $318.6 million for the six months ended June 29, 2024.
What is the primary reason for Latham Group's declining financial performance?
The primary reason for Latham Group's declining financial performance is likely reduced consumer spending on discretionary items such as swimming pools, leading to lower sales across its product segments.
What are the key risks highlighted in Latham Group's 10-Q filing?
Key risks include continued macroeconomic headwinds impacting consumer discretionary spending and potential inventory adjustments by dealers, which could further depress sales of In-Ground Swimming Pools, Liners, and Covers.
How might Latham Group's performance affect its competitive position?
Latham Group's significant revenue and net income declines could weaken its competitive position, potentially allowing rivals to gain market share if they are better able to navigate the challenging economic environment.
What is the impact of the net loss on Latham Group's shareholders?
The net loss of $0.0 million for the quarter and year-to-date periods means no earnings are being generated for shareholders, which typically leads to decreased investor confidence and potential stock price depreciation for SWIM.
Are there any positive aspects to Latham Group's Q2 2025 filing?
Based on the provided data, the filing primarily highlights significant declines in revenue and net income, indicating a challenging period with no immediately apparent positive financial aspects.
What is the outlook for the swimming pool industry given Latham Group's results?
Latham Group's results suggest a challenging outlook for the swimming pool industry, indicating that consumer demand for large discretionary purchases is currently weak due to broader economic pressures.
What was Latham Group's net income for the first six months of 2025?
Latham Group, Inc. reported a net income of $0.0 million for the six months ended June 28, 2025, a 100.0% decrease from the $22.5 million net income reported for the six months ended June 29, 2024.
Risk Factors
- Reduced Consumer Spending [high — market]: Consumer spending on discretionary items, such as swimming pools, has decreased. This directly impacts Latham's sales across its product segments, as evidenced by the 15.1% revenue decline in Q2 2025.
- Macroeconomic Headwinds [high — market]: Continued macroeconomic challenges are a significant risk. These headwinds are contributing to reduced consumer confidence and spending, further pressuring sales volumes for Latham's products.
- Dealer Inventory Adjustments [medium — operational]: Dealers may need to adjust their inventory levels in response to slower sales. This could lead to reduced orders from Latham, impacting the company's revenue and cash flow.
Industry Context
The swimming pool industry is highly sensitive to consumer discretionary spending and broader economic conditions. Competitors face similar challenges related to reduced consumer confidence and demand for non-essential home improvement products. The market is characterized by seasonal demand and reliance on dealer networks for sales and distribution.
Regulatory Implications
Latham Group must comply with SEC reporting requirements, including timely filing of 10-Q reports. Any misstatements or omissions in these filings could lead to regulatory scrutiny and penalties from the SEC.
What Investors Should Do
- Monitor dealer inventory levels and order trends.
- Analyze consumer spending data for discretionary home goods.
- Evaluate management's strategies to mitigate macroeconomic headwinds.
Key Dates
- 2025-06-28: End of Second Quarter 2025 — The period for which the financial results in the 10-Q were reported, showing significant revenue and net income declines.
- 2025-08-06: Filing Date of 10-Q — The date the company officially submitted its quarterly report to the SEC, providing detailed financial and operational information.
Glossary
- 10-Q
- A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document contains the detailed financial results and analysis for Latham Group, Inc. for the specified period.)
- Net Income
- The profit of a company after all expenses and taxes have been deducted from revenue. (Latham Group reported a net loss of $0.0 million for Q2 2025, a significant deterioration from the prior year's profit, indicating severe profitability challenges.)
- Revenue
- The total amount of income generated by the sale of goods or services related to the company's primary operations. (Latham Group experienced a substantial revenue decline of 15.1% in Q2 2025, highlighting a significant drop in sales.)
Year-Over-Year Comparison
Compared to the prior year period, Latham Group, Inc. has seen a significant downturn. Revenue for the three months ended June 28, 2025, decreased by 15.1% to $142.0 million, and net income turned into a loss of $0.0 million from a profit of $14.1 million. The six-month period also reflects this trend with a 14.3% revenue drop and a complete erosion of net income. New risks related to macroeconomic headwinds and potential dealer inventory adjustments have become more prominent, contributing to a bearish sentiment.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on August 6, 2025 regarding Latham Group, Inc. (SWIM).