Leslie's Earnings Call Transcripts
Fiscal Year 2026
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Q1 net sales declined 16% year-over-year to $147.1M, with a net loss of $83M, as transformation initiatives including store closures, pricing changes, and cost optimization progressed. Full-year guidance for sales and Adjusted EBITDA was reaffirmed, with most benefits expected in the second half.
Fiscal Year 2025
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Q4 sales declined 2.2% year-over-year, with a $162.8M net loss due to a $184M impairment, but gross margin improved. FY26 guidance anticipates $1.1B–$1.25B in sales and $55M–$75M Adjusted EBITDA, with store closures and cost optimization expected to drive profitability.
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Fiscal Q3 2025 saw a 12% sales decline due to adverse weather and heightened competition, with net sales at $500 million and gross margin down 62 bps year-over-year. Strategic transformation and cost optimization are underway, with full-year sales expected at $1.21–$1.235 billion.
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Second quarter sales declined 6% year-over-year due to weather, but cost controls kept EBITDA in line with guidance. Strategic initiatives like LFCs, a new loyalty program, and same-day delivery are underway, with a strong focus on debt reduction and operational efficiency.
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Revenue grew 0.7% to $175M, led by 9% Pro sales growth, while core chemicals and inventory efficiency improved. Transformation initiatives, including local fulfillment centers and digital upgrades, are underway, with full-year sales guidance of $1.3–$1.37B and a focus on debt reduction.
Fiscal Year 2024
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Q4 and fiscal 2024 sales declined 8% year-over-year, with adjusted EBITDA and EPS also down, but results were in line with revised guidance. Strategic focus is on customer centricity, convenience, and asset utilization, with debt reduction as the top capital priority. Early Q1 trends show strength in pro and e-commerce channels.
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A new CEO with deep retail experience is joining after a planned transition. The business is normalizing post-pandemic, with chemical sales rebounding and equipment sales lagging due to macro pressures. Margin recovery is underway, supported by cost improvements and supplier partnerships.
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Q3 sales declined 7% year-over-year due to weather and cautious consumer spending, but June showed improvement in key categories. Gross margin fell to 40%, and adjusted EBITDA was $109 million. The outlook remains cautious, with a focus on cost control, debt reduction, and strategic growth initiatives.