Leslies Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.29%.
Did LESL Beat Earnings? Q2 2026 Results
Leslie's, Inc. delivered a sharply mixed fiscal Q2 2026, posting revenue of $184.74 million, a 4.3% year-over-year gain that cleared the $162.47 million consensus estimate by 13.71%, while its loss per share of $5.36 missed the $4.41 consensus by 21.45%, extending the company's deeply unprofitable seasonal stretch. The top-line strength was fueled by the company's 'Price Drop' initiative, launched in March, which drove a 6.6% comparable sales increase and 8% customer count growth by re-engaging lapsed buyers and drawing in new ones. Gross margin expanded to 28.9% from 24.8% a year ago, and adjusted EBITDA improved by $9.20 million to negative $26.82 million, though the net loss widened slightly to $52.50 million as a tax benefit that cushioned results a year ago swung to a $447,000 expense. Some analysts remain cautious on the stock given lingering balance sheet concerns, including a stockholders' deficit of negative $541.33 million. Management reiterated full-year guidance of $1.10 billion to $1.25 billion in sales and $55 million to $75 million in adjusted EBITDA, noting the back half carries most of the year's earnings weight.
- 4.3% revenue growth and 6.6% comparable sales increase year-over-year
- 8% customer count growth year-over-year
- 'Price Drop' initiative launched in March driving strong transaction growth and customer engagement
- Gross margin expansion of 410 basis points to 28.9% from 24.8%
- SG&A held flat year-over-year despite revenue growth, declining 220 bps as a percentage of sales
- Cost optimization efforts funding price investments
- Inventory reduction of 21.7% year-over-year
“Our comprehensive transformation plan delivered measurable results in the second quarter as we position Leslie's for sustainable profitable growth. Second quarter performance demonstrated the effectiveness of our strategic initiatives, with revenue growth of 4.3%, comparable sales increase of 6.6% and total customer count growth of 8% year-over-year. The early success of our 'Price Drop' initiative, launched in March, drove strong transaction growth and customer engagement in the quarter. Importantly, we have funded our price investments through controlled spending and successful cost optimization efforts supporting gross margin expansion in the quarter.”
Leslie's CEO, on the earnings call
Forward Guidance & Outlook
Leslie's reiterated its full-year fiscal 2026 guidance: sales of $1,100 million to $1,250 million, adjusted EBITDA of $55 million to $75 million, and capital expenditures of $20 million to $25 million. The company anticipates generating the majority of its sales and earnings during the second half of the fiscal year due to the seasonal nature of the pool and spa care industry. Guidance includes the impact on revenue of store closures as well as the addback of expected costs incurred with these closures.
LESL YoY Financials
Figures from SEC filings and company reports. Not investment advice.