Leslie's posts sales decline, withdraws 2025 guidance

Leslie's Inc. (NASDAQ: LESL) reported preliminary third quarter fiscal 2025 net sales of approximately $500 million, representing a 12% decline from the prior year quarter. The pool and spa care retailer attributed the decrease to unfavorable weather conditions during peak pool season.

The company posted preliminary net income of $20 million to $22 million for the quarter ended June 28, 2025, with adjusted net income ranging from $35 million to $38 million. Diluted earnings per share came in at $0.11 to $0.12, while adjusted diluted earnings per share reached $0.19 to $0.21.

Leslie's reported adjusted EBITDA of approximately $79 million to $82 million for the quarter. The company had cash of approximately $43 million at quarter end and $20 million outstanding on its revolving credit facility, which was subsequently paid off.

"The extremely wet and unseasonably cooler temperatures across our top geographies disrupted peak pool season," said CEO Jason McDonell. "The unfavorable weather trends impacted traffic as many customers delayed pool openings."

The company withdrew its previously provided fiscal year 2025 guidance, citing market conditions and year-to-date performance. Leslie's plans to provide updated expectations when it reports full third quarter results on August 6, 2025.

McDonell noted the company is conducting a strategic and operational review focused on improving sales and profitability across stores, online operations, and distribution centers. The review includes assessment of cost structure and initiatives to improve working capital and profitability.

The preliminary results are unaudited and subject to quarter-end adjustments. Leslie's will host a conference call at 5:00 p.m. Eastern time on August 6 to discuss the complete financial results.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• BMO starts chip stocks coverage: Here are its preferred picks
• Investing.com’s stocks of the week