The company plans to broaden its geographic presence in 2024 by opening approximately 10 or more new sales centers and making selective acquisitions. This expansion strategy aims to further penetrate existing markets and expand into new geographic areas and product categories.

The company experienced a decline in sales volumes of discretionary products, primarily due to reduced pool construction activities. This trend indicates a shift in consumer spending patterns and could impact future growth if macroeconomic conditions continue to strain consumer spending on major projects.

The company is increasing investments in digital transformation initiatives to improve customer experience and enhance existing customer relationships. This strategic focus on technology aims to provide best-in-class service and drive growth.

Despite inflationary pressures, the company managed volume-driven expenses in line with lower sales, indicating effective cost control measures. This expense management helped mitigate the impact of lower sales volumes on overall profitability.

Inventory levels decreased 14% to $1.4 billion, consistent with the company's inventory reduction goals. This reduction reflects effective inventory management and improved alignment with sales trends.

The company projects capital expenditures for 2024 to average 1% to 1.5% of net sales, which aligns with historical averages. This consistent investment strategy supports ongoing maintenance and growth of the sales center network and technology infrastructure.

The company identifies adverse weather conditions as a key risk factor due to the seasonal nature of its business. Unfavorable weather during peak seasons can significantly affect sales and results.

The company's distribution business is highly dependent on maintaining favorable relationships with suppliers. A disruption or adverse change in these relationships could negatively impact the company's ability to source products and maintain profitability.

The company acknowledges the increasing risk of cybersecurity attacks and the importance of maintaining the security of confidential information. Failure to do so could damage the company's reputation and expose it to litigation.

The company faces intense competition from numerous regional and local distributors, as well as national wholesale distributors of irrigation and landscape supplies. This competitive landscape could impact market share and profitability.

The company acknowledges that low barriers to entry in the industry could lead to the emergence of new competitors. This increased competition could impact the company's ability to maintain market share and profitability.

The company faces competition from mass market retailers who may increase their focus on the pool and irrigation industries. This increased competition could impact the company's direct customers and end-use consumers.

The company utilizes warehouse management technology to optimize receiving, inventory control, picking, packing, and shipping functions. This technology aims to improve operational efficiency and reduce costs.

The company's preferred vendor program encourages distribution networks to stock and sell products from a smaller number of vendors offering the best overall terms and service. This program aims to optimize profitability and shareholder return.

The company operates four centralized shipping locations in the United States that redistribute products to sales centers or directly to customers. These locations help to improve efficiency in the distribution process.

The company offers a growing selection of energy-efficient products, which support sustainability and can help pool owners save energy, water, time and money. Major equipment manufacturers have developed and will continue to develop more retrofit kits that allow homeowners to interact with their pools or hot tubs through their smartphones.

The company launched Pool360 WaterTest and is rolling out Pool360 PoolService under the Pool360 platform of technologies. These tools allow the company to support and grow its retail and service customer base.

The company offers virtual tools for homeowners to select and design their pool and outdoor environments, collaborating with their chosen contractors to install these products. These tools provide a competitive advantage in these categories.

Total debt outstanding decreased $333.5 million in 2023 as the company used operating cash flows to reduce debt. This indicates a focus on maintaining a prudent capital structure.

The company executed $306.4 million in share repurchases during the year. As of February 20, 2024, $344.1 million remained available for use under the current share repurchase program.

Capital expenditures were 1.1% of net sales in 2023. The company focuses capital expenditure plans based on the needs of its sales centers and has increased investment in technology and automation.

The company is committed to sustainable business practices, which includes offering eco-friendly products to customers, closely monitoring sourcing activities, and being good stewards within the communities it serves.

The company's sustainability goals include the reduction of greenhouse gases and other harmful air emissions, water conservation, energy conservation and carbon footprint minimization.

The company's commitment to the health, safety and wellness of its employees ranks at the top of its core operating priorities. The ultimate goal is to send every employee home each night in the same condition in which they came to work that morning.

Higher interest and inflation rates, increased economic uncertainties, and tighter consumer credit led to a slowdown in new pool permits, signaling a decline in new construction projects.

Steady increases in home values, lack of affordable new homes and increased mortgage rates have prompted homeowners to stay in their homes longer and upgrade their home environments, including their backyards.

The company is susceptible to adverse weather conditions, which could intensify as a result of climate change. Unfavorable weather during peak seasons can significantly affect results.