Leslie's

LESL Q1 2026 Earnings

Reported Feb 17, 2026 at 4:30 PM ET · SEC Source

Q1 26 EPS

$-5.24

MISS 23.68%

Est. $-4.24

Q1 26 Revenue

$147.1M

MISS 9.43%

Est. $162.5M

vs S&P Since Q1 26

+573.2%

BEATING MARKET

LESL +580.0% vs S&P +6.8%

Market Reaction

Did LESL Beat Earnings? Q1 2026 Results

Leslie's delivered a bruising fiscal first quarter, missing on both the top and bottom lines as the pool and spa retailer navigates one of the most disruptive chapters in its history. The company posted an adjusted diluted loss of $5.24 per share, fa… Read more Leslie's delivered a bruising fiscal first quarter, missing on both the top and bottom lines as the pool and spa retailer navigates one of the most disruptive chapters in its history. The company posted an adjusted diluted loss of $5.24 per share, falling 23.68% short of the consensus estimate of $4.24, while revenue slid 16.0% year-over-year to $147.13 million, missing analyst expectations of $162.45 million by 9.43%. The primary culprits were the deliberate closure of 80 underperforming stores and one distribution center, which triggered $10.15 million in non-cash impairment charges and $6.40 million in inventory write-downs, compressing gross margin to just 18.4% from 27.2% a year ago. The net loss widened to $82.97 million, nearly double the prior-year figure, leaving the balance sheet with a stockholders' deficit of negative $489.85 million and just $3.62 million in cash. Management expressed cautious optimism heading into the critical pool season, noting positive comparable store sales in January, and reiterated full-year fiscal 2026 guidance of $1.10 billion to $1.25 billion in sales and $55 million to $75 million in adjusted EBITDA, with the majority of earnings expected in the seasonally stronger second half.

Key Takeaways

  • Closure of 80 underperforming stores and one distribution center during Q1
  • Comparable sales decreased 15.5%
  • Lower product margin on core chemicals
  • $10.1 million non-cash impairment charge from store and distribution center closures
  • $6.4 million non-cash inventory impairment related to store closures
  • Improved inventory efficiency with approximately 23% year-over-year reduction
  • SG&A expenses decreased to $85.7 million from $87.4 million
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LESL YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“Leslie's transformation journey is gaining momentum as we execute with precision and urgency. Our first quarter results met our expectations, and we've made meaningful optimization progress across stores, distribution, SKUs, and costs. While Q1 and Q2 historically represent approximately 25% of annual revenue, to start Q2, we are seeing encouraging momentum with positive comparable store sales in January. This, coupled with the progress we're making on our transformation initiatives, gives us conviction in delivering our full-year commitments.”

— Jason McDonell, Q1 2026 Earnings Press Release