Companies /Consumer Cyclical

Leslies Inc

NASDAQ: LESL Specialty Retail
$0.53
▼ $0.04 (−6.64%) today
Markets closed · 12:22am ET

Q2 2025 Earnings

Reported May 8, 2025, 4:15pm ET · SEC source
$-0.25
Miss −4.17%
EPS · est. $-0.24
$177.1M
Miss −4.25%
Revenue · est. $185.0M
−21.3%
Trailing market
LESL vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−8%−4%0+4%May 8May 9report 4:15pm ETearnings−0.0%+0.8%
−8%−4%0+4%May 8May 9earnings−0.0%+0.8%
LESL +0.8%S&P 500 −0.0%
−8%−4%0+4%May 8May 9report 4:15pm ETearnings+0.0%+0.8%
−8%−4%0+4%May 8May 9earnings+0.0%+0.8%
LESL +0.8%NASDAQ +0.0%
0+20%May 7May 16report 4:15pm ETearnings+5.2%+36.4%
0+20%May 7May 16earnings+5.2%+36.4%
LESL +36.4%S&P 500 +5.2%
0+20%May 7May 16report 4:15pm ETearnings+6.8%+36.4%
0+20%May 7May 16earnings+6.8%+36.4%
LESL +36.4%NASDAQ +6.8%
+4.66%
Day of report
+8.42%
Next session
+24.65%
One week
−14.78%
30 days

S&P 500 over the same 30 days: +6.56%.

Did LESL Beat Earnings? Q2 2025 Results

Leslie's delivered a disappointing fiscal second quarter, missing on both the top and bottom lines as adverse weather weighed heavily on the pool and spa retailer's peak selling season. Revenue fell 6.1% year-over-year to $177.13 million, coming in below the $185.00 million consensus by 4.25%, while the adjusted loss per diluted share of $0.25 edged past the $0.24 estimate analysts had penciled in. The primary culprit was a 6.7% comparable sales decline driven by weather-related traffic softness, which also squeezed gross margin by 400 basis points to 24.8% and pushed adjusted EBITDA to negative $36.06 million from negative $19.28 million a year ago. Management noted that despite the revenue shortfall, adjusted EBITDA landed in line with internal targets owing to swift cost actions. On the offensive side, Leslie's recently relaunched its Pool Perks Rewards Program with new tiered benefits, underscoring a broader customer-centricity push under CEO Jason McDonell. The company reaffirmed its full-year fiscal 2025 guidance, projecting sales of $1.30 billion to $1.37 billion and adjusted EBITDA of $96.00 million to $116.00 million, signaling confidence in a seasonal second-half recovery.

Key Takeaways
  • Adverse weather trends impacted customer traffic resulting in softer top-line performance
  • Comparable sales decreased 6.7%
  • Gross margin compression of 400 basis points year-over-year to 24.8%
  • Non-comparable sales from new stores contributed $0.9 million
  • Inventory reduced 11.6% year-over-year to $335.1 million
  • Interest expense decreased to $15.9 million from $18.2 million in prior year

“I am proud of our team's dedication, resiliency and customer first mindset as we move forward in our transformation journey. Our team remains focused on the fundamentals of our business to deliver progress against our strategic initiatives.”

Leslie's CEO, on the earnings call

Forward Guidance & Outlook

Leslie's reaffirmed its full-year fiscal 2025 outlook: Sales of $1,304 million to $1,370 million; Gross profit of $473 million to $505 million; Net (loss) income of $(10) million to $5 million; Adjusted net (loss) income of $(2) million to $13 million; Adjusted EBITDA of $96 million to $116 million; Adjusted diluted (loss) earnings per share of $(0.01) to $0.07; Diluted weighted average shares outstanding of 185 million.

LESL YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$-90,000,000$0$90.0M$180.0M$188.7M$177.1MRevenue$54.3M$43.9MGross Profit$-116,491,693$-48,379,000Operating Income$-99,708,568$-51,320,000Net Income
$-90,000,000$0$90.0M$180.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.