Swimming Pool and Spa Retailers NAICS 459999

Nov 26, 2025 - Revenue Uptick for Swimming and Spa Retailers

• According to a report in AQUA Magazine, swimming and spa retailers reported steady revenue in Q3 2025 despite margin pressures, according to the Pool & Hot Tub Alliance’s Quarterly Pulse Survey. Overall industry revenue rose modestly (+1% to +5%) year-over-year, with service and remodel segments driving growth. Service calls increased for 55% of businesses, and remodel jobs rose for 42%, reflecting consumer preference for upgrading existing pools and spas. New construction softened, with 37% of companies reporting declines, highlighting sensitivity to higher interest rates and inflation. Retailers’ bottom-line profits remained largely unchanged (+1% to -1%) as material costs absorbed gains. Key challenges include economic factors (70%), profitability (62%), and labor shortages (47%). Despite these headwinds, 69% of companies expect revenue growth over the next 12 months, and 77% feel well positioned to adapt. The survey underscores cautious confidence as retailers balance resilient demand with persistent cost pressures.
• Softening consumer sentiment and confidence in late 2025 reflects a growing weakness in discretionary spending, posing challenges for US swimming pool and spa retailers. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates. Holiday spending is projected to fall, with promotions driving purchasing decisions.

• Large pool supply retailer Leslie’s reported a 12.2% year-over-year decline in Q3 FY2025 sales to $500.3 million, citing adverse weather and intensified pricing competition during its peak season. Net income fell to $21.7 million from $60.7 million, with adjusted EBITDA down 25.5% during the quarter. The company reduced labor hours to offset softer demand and reduced store traffic. It also initiated strategic reviews to stabilize operations. The challenging quarter reflects broader challenges in the pool supply industry, including seasonal volatility, weather dependency, and competitive pricing pressures. Leslie’s results highlight the need for operational agility and strategic investment to maintain profitability amid fluctuating consumer demand and macroeconomic headwinds.
• Single-family housing starts, which are a leading indicator of swimming pool construction and pool supplies demand, decreased in August 2025 year over year, according to National Association of Home Builders (NAHB) data. New home construction has been hampered by ongoing concerns around high mortgage rates, rising inventories, and supply-side issues driving up building materials costs. Per the report, the August reading of 1.31 million starts is the number of housing units builders would begin if development maintained this pace for the next 12 months. Within this number, single-family starts fell 7% to an 890,000 seasonally adjusted annual rate and were down 4.9% on a year-to-date basis. Regions showing growth for combined single-family and multi-family starts year to date were the Midwest (up 15%), Northeast (up 8.3%), and the West (up 0.1%). Meanwhile, there was a 3.5% decline in the South year to date.