Leslie’s (NASDAQ:LESL) Issues Earnings Results

Leslie’s (NASDAQ:LESL) posted its quarterly earnings data on Tuesday. The company reported ($5.34) earnings per share for the quarter, missing analysts’ consensus estimates of ($4.20) by ($1.14), Zacks reports.

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 Price Performance

LESL traded up $0.08 during trading on Tuesday, reaching $1.20. 404,249 shares of the stock were exchanged, compared to its average volume of 165,918. The business’s 50 day moving average price is $1.71 and its two-hundred day moving average price is $3.88. The company has a market capitalization of $11.18 million, a price-to-earnings ratio of -0.05 and a beta of 1.30. Leslie’s has a 1 year low of $1.03 and a 1 year high of $31.70.

Institutional Investors Weigh In On Leslie’s

Several institutional investors and hedge funds have recently made changes to their positions in LESL. Engineers Gate Manager LP increased its holdings 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 acquiring an additional 46,468 shares in the last quarter. Barclays PLC acquired a new stake in shares of Leslie’s in the fourth quarter valued at approximately $35,000. Scopia Capital Management LP purchased a new position in shares of Leslie’s during the 2nd quarter worth approximately $41,000. Canada Pension Plan Investment Board raised its position 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 last quarter. Finally, Qube Research & Technologies Ltd purchased a new stake in Leslie’s in the 2nd quarter valued at approximately $50,000.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on LESL shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of Leslie’s in a research report on Friday, December 26th. Morgan Stanley set a $1.50 price target on shares of Leslie’s and gave the stock an “underweight” rating in a research note on Thursday, January 15th. Zacks Research downgraded shares of Leslie’s from a “hold” rating to a “strong sell” rating in a research report on Monday, February 9th. Wall Street Zen cut Leslie’s from a “hold” rating to a “sell” rating in a research report on Sunday, December 28th. Finally, Telsey Advisory Group reissued a “market perform” rating and set a $3.00 target price on shares of Leslie’s in a research note on Friday, November 28th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and an average price target of $10.21.

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.