Leslie’s (NASDAQ:LESL) Issues Quarterly Earnings Results, Misses Estimates By $0.90 EPS

Leslie’s (NASDAQ:LESL) issued its quarterly earnings data on Wednesday. The company reported $3.96 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.86 by ($0.90), FiscalAI reports. The business had revenue of $458.49 million for the quarter, compared to analyst estimates 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 Down 41.7%

Shares of NASDAQ LESL opened at $0.77 on Friday. The company has a market cap of $7.21 million, a price-to-earnings ratio of -0.03 and a beta of 1.74. The firm’s fifty day moving average is $5.08 and its 200 day moving average is $2.90. Leslie’s has a 52 week low of $0.73 and a 52 week high of $12.53.

Hedge Funds Weigh In On Leslie’s

Several hedge funds and other institutional investors have recently modified their holdings of LESL. Engineers Gate Manager LP grew its stake in shares of Leslie’s by 309.7% in the second quarter. Engineers Gate Manager LP now owns 61,474 shares of the company’s stock worth $26,000 after purchasing an additional 46,468 shares during the last quarter. Quadrature Capital Ltd bought a new position in Leslie’s during the 4th quarter valued at approximately $34,000. Barclays PLC purchased a new stake in Leslie’s in the 4th quarter worth approximately $35,000. Scopia Capital Management LP bought a new stake in shares of Leslie’s in the 2nd quarter worth approximately $41,000. Finally, Canada Pension Plan Investment Board increased its stake 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 valued at $49,000 after buying an additional 32,500 shares during the period.

Analysts Set New Price Targets

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