Leslie’s (NASDAQ:LESL) Posts Earnings Results, Misses Expectations By $1.04 EPS

Leslie’s (NASDAQ:LESL) released its quarterly earnings results on Tuesday. The company reported ($5.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($4.20) by ($1.04), FiscalAI reports. The company had revenue of $147.13 million during the quarter, compared to analysts’ expectations of $161.19 million.

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

• Management reaffirmed full-year guidance of net sales of $1.1B–$1.25B and Adjusted EBITDA of $55M–$75M, citing early Q2 momentum (positive comps in January) and confidence in executing their transformation plan.
• Leslie’s is moving to a national pricing transformation (“new low prices, same great quality”) to drive traffic and re-engage lapsed customers (they lost 160,000 residential customers in 2025), but expects a ~100–150 bps annual gross margin headwind from these pricing changes.
• The company completed the rapid closure of 80 underperforming locations, which it expects will reduce annual sales by $25M–$35M but produce a $4M–$10M annualized net EBITDA improvement once fully realized.
• Q1 results showed deterioration: net sales of $147.1M (down ~16% YoY), comparable-store sales down 15.5%, gross margin fell to 18.4% from 27.2%, Adjusted EBITDA was negative $40.3M and net loss was $83M (including a $10.1M store/DC impairment).
• Operational initiatives — including SKU rationalization of >2,000 SKUs, DC network optimization (Illinois DC closure), and broad expense reductions — are expected to generate combined EBITDA and cost savings (various line-item projections totaling roughly $5M–$12M+), while liquidity and capex plans aim to support the 2026 pool season.

Leslie’s Stock Down 17.0%

Shares of NASDAQ:LESL opened at $1.00 on Thursday. The company has a market cap of $9.28 million, a P/E ratio of -0.03 and a beta of 1.30. Leslie’s has a 52 week low of $0.97 and a 52 week high of $31.70. The company has a 50-day moving average price of $1.64 and a 200 day moving average price of $3.78.

Hedge Funds Weigh In On Leslie’s

A number of large investors have recently modified their holdings of the business. Engineers Gate Manager LP lifted its holdings in shares of Leslie’s by 309.7% in the 2nd quarter. Engineers Gate Manager LP now owns 61,474 shares of the company’s stock valued at $26,000 after buying an additional 46,468 shares during the period. Quadrature Capital Ltd purchased a new position in Leslie’s in the fourth quarter worth $34,000. Barclays PLC acquired a new stake in Leslie’s in the fourth quarter valued at $35,000. Scopia Capital Management LP purchased a new stake in shares of Leslie’s during the 2nd quarter worth $41,000. Finally, Canada Pension Plan Investment Board grew its stake in shares of Leslie’s by 38.5% during the 2nd quarter. Canada Pension Plan Investment Board now owns 117,000 shares of the company’s stock worth $49,000 after purchasing an additional 32,500 shares during the period.

Wall Street Analyst Weigh In

Several analysts recently commented on LESL shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of Leslie’s in a research report on Friday, December 26th. Jefferies Financial Group set a $3.75 target price on shares of Leslie’s and gave the company a “hold” rating in a report on Wednesday, December 3rd. Telsey Advisory Group reissued a “market perform” rating and set a $3.00 price target on shares of Leslie’s in a report on Friday, November 28th. Wall Street Zen cut Leslie’s from a “hold” rating to a “sell” rating in a research report on Sunday, December 28th. Finally, Zacks Research cut Leslie’s from a “hold” rating to a “strong sell” rating in a research report on Monday, February 9th. Five analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Leslie’s has a consensus rating of “Reduce” and a consensus price target of $6.55.

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.