Leslie’s (NASDAQ:LESL) Issues Earnings Results

Leslie’s (NASDAQ:LESL) announced 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 the consensus estimate 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 Performance

Shares of NASDAQ LESL traded up $0.07 during midday trading on Wednesday, hitting $1.27. 113,798 shares of the company’s stock traded hands, compared to its average volume of 164,785. The firm has a fifty day moving average of $1.67 and a 200 day moving average of $3.83. Leslie’s has a 1 year low of $1.03 and a 1 year high of $31.70. The stock has a market capitalization of $11.79 million, a price-to-earnings ratio of -0.05 and a beta of 1.30.

Wall Street Analyst Weigh In

A number of research firms have recently commented on LESL. Morgan Stanley set a $1.00 target price on Leslie’s in a research note on Wednesday. Zacks Research cut shares of Leslie’s from a “hold” rating to a “strong sell” rating in a report on Monday, February 9th. Wall Street Zen lowered shares of Leslie’s from a “hold” rating to a “sell” rating in a research note on Sunday, December 28th. Jefferies Financial Group set a $3.75 price objective on shares of Leslie’s and gave the stock a “hold” rating in a report on Wednesday, December 3rd. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $3.00 price target on shares of Leslie’s in a research report on Friday, November 28th. Five investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, Leslie’s currently has a consensus rating of “Reduce” and an average price target of $6.55.

Institutional Investors Weigh In On Leslie’s

Hedge funds and other institutional investors have recently modified their holdings of the stock. Engineers Gate Manager LP raised its stake in Leslie’s by 309.7% during the 2nd quarter. Engineers Gate Manager LP now owns 61,474 shares of the company’s stock valued at $26,000 after purchasing an additional 46,468 shares during the period. Barclays PLC purchased a new position in shares of Leslie’s in the fourth quarter worth $35,000. Scopia Capital Management LP purchased a new position in shares of Leslie’s in the second quarter worth $41,000. Canada Pension Plan Investment Board boosted its position in shares of Leslie’s by 38.5% during the second quarter. Canada Pension Plan Investment Board now owns 117,000 shares of the company’s stock worth $49,000 after acquiring an additional 32,500 shares during the last quarter. Finally, Qube Research & Technologies Ltd purchased a new position in Leslie’s during the second quarter valued at $50,000.

About Leslie’s

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.