NEW YORK, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Leslie's, Inc. (NASDAQ: LESL) on behalf of long-term stockholders following a class action complaint that was filed against Leslie's on September 8, 2023 with a Class Period from February 5, 2021 to July 13, 2023. Our investigation concerns whether the board of directors of Leslie's have breached their fiduciary duties to the company. The Cla ...

Financial Data and Key Metrics Changes - Total fiscal third quarter sales were $570 million, down 7% year-over-year, impacted by unfavorable weather and continued weakness in discretionary product sales [10][18] - Gross margin was 40%, down 101 basis points year-over-year, primarily due to chemical price actions and occupancy deleverage [13][20] - Adjusted EBITDA was $109 million, compared to $129 million in the same period last year, with adjusted diluted earnings per share at $0.34, down from $0.41 [21][22] Business Line Data and Key Metrics Changes - Residential pool sales declined 8%, PRO pool sales were down 2%, and residential hot tub sales decreased by 4% [18] - Chemical sales improved to down 1% in the quarter, with a positive year-to-date volume, while equipment sales were down 15% [11][25] - Discretionary product sales were down 10%, showing a sequential improvement from the previous quarter [11][25] Market Data and Key Metrics Changes - Total transactions were down 2% year-over-year, with traffic improving to down 5% in the quarter from down 10% in the second quarter [10][9] - The company outperformed specialty pool retailers in sales growth during the third quarter, indicating a gain in market share [11][12] - Digital traffic share grew during the quarter, reflecting an increase in online engagement [11] Company Strategy and Development Direction - The company aims for long-term sales growth in the mid-single digits, targeting a gross margin of 40% and an adjusted EBITDA margin in the mid-teens [7][14] - Strategic initiatives include enhancing customer loyalty programs, expanding PRO contracts, and pursuing store growth while prioritizing debt reduction [15][16][27] - The company is focused on improving operational efficiency and profitability through cost management and inventory reduction [26][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing normalization of industry demand post-pandemic and the impact of weather on sales [4][28] - There are positive signs emerging, such as improved chemical sales and a return to pre-pandemic equipment unit volumes [25][28] - The company remains cautious about consumer spending due to inflation and high interest rates, which may affect future performance [8][28] Other Important Information - The company ended the quarter with $784 million outstanding on its secured term loan, a decrease from the previous year [22] - Cash and cash equivalents increased to $74 million, up from $19 million in the prior year [23] - Inventory levels decreased by 31% year-over-year, indicating improved supply chain management [23] Q&A Session Summary Question: Understanding the shortfall in 3Q versus prior guidance - Management explained that the shortfall was primarily due to lower transactions and average order value, driven by cautious consumer behavior and weather impacts [31][32] Question: Gross margin outlook and headwinds - Management indicated that the difference in gross margin targets is due to changes in business mix, with lower margins in the growing PRO business [34][35] Question: Performance of loyalty customers - Loyalty customers continue to outperform non-members, and management is focused on increasing loyalty penetration [40][41] Question: Chemical pricing and market dynamics - Management noted that chemical pricing has stabilized, and they do not anticipate significant price deflation in the near future [62][63] Question: Fourth quarter sales outlook - The outlook for Q4 reflects continued cautious consumer behavior and potential weather disruptions, with a projected sales decline of around 7% [57][58]

Leslie's, Inc. (LESL) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.17, delivering no surprise. Over the last four quarters, the company has surpassed ...

Investors in Leslie's, Inc. (LESL) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 16, 2024 $15.00 Call had some of the highest implied volatility of all equity options today. Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event comi ...

This has it expecting adjusted earnings per share of 32 cents to 33 cents alongside revenue of roughly $570 million for the quarter. For comparison, Wall Street is expecting adjusted EPS of 42 cents with revenue of $615.41 million for the period. "The cold and wet spring weather we experienced during the fiscal second quarter extended through May, reducing the number of pool days in non-seasonal markets and delaying the start of pool season in seasonal markets. We also continued to see weakness in large tic ...

Fiscal third quarter results impacted by unfavorable April and May weather resulting in a delayed start to the pool season; Company performance improved in June with warmer weather Continued weakness in discretionary product categories due to persistent inflation and high interest rates Company updates fiscal 2024 outlook based on year-to-date performance and current trends Considering these preliminary results and expectations for the fourth quarter of fiscal 2024, the Company is revising its full year fis ...

"On behalf of Leslie's, we are thrilled to welcome Lorna to the Board of Directors. Her breadth and depth of experience, leadership, and strategic insights will be invaluable as we continue to drive long-term growth and deliver value to our stakeholders. We are excited for Lorna to engage with our Board and our management team," said John Strain, Leslie's Chairman of the Board. Ms. Nagler will contribute nearly 40 years of retail expertise, including first-hand experience leading a wide variety of retail co ...

Ms. Nagler said, "I am thrilled to be joining the Leslie's Board and look forward to bringing my years of experience to help drive profitable growth and advance the Company's strategic initiatives." Founded in 1963, Leslie's is the largest and most trusted direct-to-consumer brand in the U.S. pool and spa care industry. The Company serves the aftermarket needs of residential and professional consumers with an extensive and largely exclusive assortment of essential pool and spa care products. The Company ope ...

Investors can contact the law firm at no cost to learn more about recovering their losses. Leslie's, Inc. is the largest retailer of swimming pool supplies and related products in the United States. Our investigation concerns whether the Company's board of directors breached its fiduciary duties to shareholders, and/or grossly mismanaged the company. Please visit our website to review more information and submit your transaction information. Lesley F. Portnoy, Esq. Admitted CA and NY Bar lesley@portnoylaw.c ...

Financial Data and Key Metrics Changes - Total sales for the second quarter were $189 million, down 11% year over year, impacted by approximately 440 basis points from chemical price actions and a calendar shift [8][56] - Gross profit was $54 million compared to $71 million in the same quarter last year, with gross margin declining 464 basis points to 28.8% [57] - Adjusted EBITDA for the quarter was negative $19 million, and adjusted diluted earnings per share were negative $0.17 [33][58] - SG&A expenses decreased by 12% year over year to $85 million, primarily due to lower merchant fees and payroll costs [58] Business Line Data and Key Metrics Changes - Residential pool sales were down 12%, PRO pool sales down 9%, and residential hot tub sales down 14% compared to the prior year [36] - Discretionary product sales decreased by 13%, while equipment sales were down 10%, showing an improvement of 800 basis points from Q1 [32][36] - Average revenue per customer decreased by 8%, with loyalty customers performing better at a decline of 4% [34] Market Data and Key Metrics Changes - Pool openings were down 19% year over year due to unfavorable weather conditions, impacting sales significantly [31] - The company reported that specialty pool sales were down in 8 of the last 10 quarters, but they have grown faster than the industry by an average of approximately 380 basis points over that period [52] - The company experienced a 200 basis point increase in online market share despite overall underperformance compared to the industry [99] Company Strategy and Development Direction - The company remains focused on executing strategic growth initiatives to drive long-term sustainable growth and profitability [17] - Plans to open 15 new stores in fiscal 2024 and convert 6 residential stores to PRO format [59] - The AccuBlue Home smart tech water testing device and membership program is gaining traction, with positive customer feedback [54] Management's Comments on Operating Environment and Future Outlook - Management noted that the weather significantly impacted traffic and transactions, but they expect improved trends as the season progresses [84][126] - The company anticipates meaningful margin expansion in the back half of the fiscal year as they cycle past the June 2023 chemical price decreases [37][104] - Management expressed confidence in long-term growth prospects despite current challenges, emphasizing strong customer service and inventory management [40][60] Other Important Information - The company ended the quarter with $786 million outstanding on its secured term loan facility, a decrease of $83 million year over year [19] - Cash and cash equivalents were $8 million at the end of the quarter, compared to $9 million for the same period last year [38] Q&A Session Summary Question: Can you provide insight on market share and pricing strategies? - Management acknowledged underperformance relative to the industry but noted a 200 basis point increase in online market share, attributing challenges to weather and traffic [99] Question: What are the trends in equipment sales? - Equipment sales were down 10%, with improvements noted in heaters and variable-speed pumps, while automatic pool cleaners faced challenges [66][91] Question: How is the customer file performing? - The customer file showed a decline of 3% quarter over quarter, but management expects stabilization and growth in the second half of the year [103] Question: What is the outlook for gross margins? - Management expects gross margin expansion in the back half of the year as they cycle past previous pricing actions and improve promotional strategies [104][111]