Latham Group, Inc. (NASDAQ: SWIM)

Latham Group, Inc. is a leading designer, manufacturer, and marketer of in-ground residential swimming pools, operating primarily in North America, Australia, and New Zealand. The company holds a dominant position in the pool industry, offering a broad portfolio of pools and related products, including in-ground swimming pools, pool covers, and pool liners. With a heritage of innovation spanning over 70 years, Latham has pioneered the first "direct-to-homeowner" digital and social marketing strategy, transforming the homeowner's purchase journey. The company's success is underpinned by long-tenured relationships with dealers, averaging over 15 years, and a commitment to providing high-quality pool products with the homeowner in mind.

Latham Group generates revenue through the sale of its comprehensive range of pool products. The company's primary products include in-ground swimming pools, pool covers, and pool liners. These products cater to a diverse customer base, including homeowners looking to enhance their outdoor living spaces and dealers who rely on Latham's products to meet consumer demand. The company's revenue streams are further bolstered by its strategic marketing initiatives, which create demand for its pools and provide high-quality, purchase-ready consumer leads to dealer partners.

• In-ground Swimming Pools: Latham offers a wide range of in-ground swimming pools, with a particular focus on fiberglass pools. The company's fiberglass pools are known for their lower up-front and lifecycle costs, faster and easier installation, premium quality and aesthetics, reduced chemical requirements, and lifetime warranty. Latham's fiberglass pools are engineered through a seven-layer composite construction process, ensuring structural integrity, durability, and long-term performance. The company also provides custom vinyl pools, which offer unlimited customization in terms of size and shape, providing the same flexibility as concrete pools. These pools are designed to withstand weather better than concrete pools and can be installed faster. The company's extensive portfolio of fiberglass pools includes unique colors, elaborate finishes, floor mosaics, lighting options, water features, in-floor cleaning, tanning ledges, and spillover spas.

• Covers: Latham's cover products include automatic safety covers and all-season pool covers. Automatic safety covers provide increased safety, especially for children, and convenience for homeowners while also driving savings by reducing energy, chemical, and cleaning costs, and lowering water evaporation. The company's all-season pool covers are used during the off-season, reducing maintenance requirements for homeowners. These covers extend the lives of homeowners' pools but typically need to be replaced every eight to ten years, providing the company with replacement revenue.

• Liners: Latham is the largest pool liner manufacturer in the North American residential in-ground swimming pool market. The company's vinyl liners are highly customizable in shape, size, color, and pattern. Vinyl liners typically need to be replaced every eight to ten years, providing Latham with a significant source of stable recurring revenue.

Latham Group's position within the industry is robust, with the company holding the leading position in North America in every product category in which it competes. The company's competitive advantages include its differentiated consumer value proposition, brand recognition, breadth and quality of its product portfolio, national manufacturing footprint in the United States, and a large network of dealers. Latham's innovative "direct-to-homeowner" marketing strategy sets it apart from competitors, driving greater understanding of the benefits of owning a pool and generating significant consumer demand. The company's strategic acquisitions and partnerships have further enhanced its market position, allowing it to expand its geographic reach and product offerings.

Latham Group's customer base primarily consists of homeowners seeking to enhance their outdoor living spaces with high-quality pool products. The company's dealer network, which includes over 375 Latham Grand dealers and a strong distribution network with over 475 distributor branch locations, plays a crucial role in reaching these customers. Through its significant investment in partnerships with dealers and distributors, as well as its consumer-oriented marketing efforts, Latham has created a "push and pull" dynamic for its products in the marketplace. The company's focus on providing high-quality, purchase-ready leads to dealer partners ensures that it meets the needs of both homeowners and dealers, driving collective success in the pool industry.