Leslie’s (NASDAQ:LESL) Announces Earnings Results

Leslie’s (NASDAQ:LESL) released its earnings results on Wednesday. The company reported $3.96 EPS for the quarter, missing the consensus estimate of $4.86 by ($0.90), FiscalAI reports. The business had revenue of $458.49 million for the quarter, compared to analysts’ expectations of $503.22 million.

Here are the key takeaways from Leslie’s’ conference call:

• Third-quarter sales fell 8.4% year over year to $458.5 million, while comparable sales declined 6.2% as softer demand, unfavorable weather, lower traffic, and 80 store closures weighed on results.
• Adjusted EBITDA dropped to $55.7 million from $81.6 million, driven by lower sales volume and gross-margin pressure; gross margin declined to 36.5% from 39.6% due to product mix and higher distribution and manufacturing costs.
• Leslie’s withdrew its fiscal 2026 sales and adjusted EBITDA guidance, citing an evolving macroeconomic environment and lower-than-expected peak-season customer traffic.
• The company is exploring strategic alternatives with financial stakeholders, potentially including a deleveraging or financing transaction, to address its $753 million of net long-term debt; management cautioned that no transaction is assured.
• Management cited early progress from its transformation plan, including positive comparable sales on leslies.com, reactivation of former customers, strong in-stock levels, lower inventory, and disciplined cost and capital spending.

Leslie’s Stock Performance

Shares of LESL traded down $0.57 during trading hours on Thursday, reaching $0.75. The stock had a trading volume of 5,423,247 shares, compared to its average volume of 856,717. Leslie’s has a 12 month low of $0.73 and a 12 month high of $12.53. The stock has a market capitalization of $7.04 million, a PE ratio of -0.03 and a beta of 1.74. The company’s 50-day moving average is $5.17 and its two-hundred day moving average is $2.91.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Jane Street Group LLC grew its stake in Leslie’s by 61.3% during the second quarter. Jane Street Group LLC now owns 3,570,476 shares of the company’s stock worth $1,499,000 after purchasing an additional 1,356,700 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Leslie’s by 923.6% during the 1st quarter. AQR Capital Management LLC now owns 1,254,176 shares of the company’s stock worth $922,000 after buying an additional 1,131,647 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Leslie’s during the 2nd quarter worth approximately $229,000. Man Group plc increased its stake in shares of Leslie’s by 87.1% in the 2nd quarter. Man Group plc now owns 1,016,078 shares of the company’s stock valued at $427,000 after acquiring an additional 473,148 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its stake in shares of Leslie’s by 2,643.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 407,913 shares of the company’s stock valued at $171,000 after acquiring an additional 393,043 shares in the last quarter.

Analyst Upgrades and Downgrades

LESL has been the topic of a number of recent analyst reports. Wall Street Zen raised shares of Leslie’s from a “sell” rating to a “hold” rating in a research note on Sunday, June 14th. Weiss Ratings reissued a “sell (e+)” rating on shares of Leslie’s in a report on Thursday, June 18th. Wolfe Research restated an “outperform” rating and set a $3.00 price objective (up from $2.00) on shares of Leslie’s in a research report on Thursday, May 14th. Finally, Mizuho reduced their price objective on Leslie’s from $4.00 to $3.50 and set a “neutral” rating on the stock in a research note on Friday, May 8th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $2.85.

Leslie’s Company Profile

Leslie’s, Inc (NASDAQ: LESL) is the largest direct-to-consumer retailer of swimming pool supplies and related equipment in the United States. Through a network of more than 900 company-operated stores and a robust e-commerce platform, the company offers a comprehensive range of pool chemicals, cleaning tools, pumps, filters, heaters and pool accessories. In addition to product retailing, Leslie’s provides in-store and in-home water testing services, equipment installation, repair and ongoing maintenance programs designed to support both residential and commercial pool owners.

Founded in 1963 in North Miami Beach, Florida, Leslie’s has grown from a single neighborhood pool-supply shop into a national specialty retailer.