Leslie's Earnings Call Transcripts
Fiscal Year 2026
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Third quarter sales declined 8.4% year-over-year to $458.5 million, with adjusted EBITDA at $55.7 million amid softer demand and increased competition. Guidance was withdrawn due to macro uncertainty, while operational improvements and cost controls continued.
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Q2 2026 delivered 4.3% revenue growth, 6.6% comp sales increase, and a 26% rise in adjusted EBITDA, driven by strategic pricing, customer reactivation, and operational efficiencies. Inventory was reduced by 22%, and guidance for fiscal 2026 was reiterated.
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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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Q2 sales declined 6% year-over-year due to weather, but cost controls kept EBITDA in line with guidance. Strategic initiatives in inventory, digital, and loyalty are driving conversion and operational improvements, with full-year guidance reaffirmed and a focus on debt reduction.
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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 full-year sales declined 8% year-over-year, with adjusted EPS near breakeven and EBITDA down. Strategic focus is on customer centricity, convenience, and asset utilization, while debt reduction remains the top priority. Pro segment and e-commerce channels showed relative strength.
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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.