Leslie's(LESL)2025-05-08 20:15Financial Performance - Sales for the second quarter of fiscal 2025 were $177.1 million, a decrease of 6.1% compared to $188.7 million in the prior year period[4] - Gross profit was $43.9 million, down 19.1% from $54.3 million in the prior year, with a gross margin of 24.8% compared to 28.8% in the prior year[4] - The operating loss for the quarter was $48.4 million, compared to a loss of $30.5 million in the prior year period[4] - Net loss was $51.3 million, an increase from a loss of $34.6 million in the prior year[4] - Adjusted EBITDA was $(36.1) million, compared to $(19.3) million in the prior year[4] - Sales for the three months ended March 29, 2025, were $177.134 million, a decrease of 6.9% compared to $188.664 million for the same period in 2024[22] - Gross profit for the six months ended March 29, 2025, was $91.663 million, down 12.5% from $104.736 million in the prior year[22] - The net loss for the three months ended March 29, 2025, was $51.320 million, compared to a net loss of $34.553 million for the same period in 2024, representing a 48.5% increase in losses[22] - Adjusted EBITDA for the six months ended March 29, 2025, was $(65.379) million, worsening from $(43.698) million in the same period of 2024[24] - The company reported an adjusted net loss of $46.525 million for the three months ended March 29, 2025, compared to $31.998 million for the same period in 2024[24] - Basic earnings per share for the three months ended March 29, 2025, were $(0.28), compared to $(0.19) for the same period in 2024[22] Cash and Liquidity - Cash and cash equivalents totaled $17.3 million as of March 29, 2025, an increase of $8.9 million from $8.4 million as of March 30, 2024[4] - Cash and cash equivalents decreased to $17.252 million as of March 29, 2025, from $108.505 million at the end of September 2024[26] Inventory and Liabilities - Inventories decreased by $44.0 million or 11.6% to $335.1 million as of March 29, 2025, compared to $379.1 million as of March 30, 2024[4] - Total liabilities increased to $1.312 billion as of March 29, 2025, compared to $1.227 billion as of March 30, 2024[26] Guidance and Outlook - The company reiterated its full year fiscal 2025 sales outlook of $1,304 million to $1,370 million[5] - Adjusted EBITDA guidance for the full year is projected to be between $96 million and $116 million[5] Strategic Focus - The company is focused on strategic themes including customer centricity, convenience, and asset utilization to drive long-term value[3] Other Financial Information - The company incurred interest expenses of $15.897 million for the three months ended March 29, 2025, down from $18.153 million in the same period of 2024[22] - The weighted average shares outstanding for the three months ended March 29, 2025, were 185.256 million, slightly up from 184.625 million in the same period of 2024[22] - The company incurred costs related to senior executive transitions and severance due to corporate restructuring activities[33] - Non-cash changes in valuation allowance for deferred taxes were reported, which management does not consider indicative of ongoing operations[34] - The tax effect of total adjustments was based on combined U.S. federal and state statutory tax rates, impacting income tax benefit[34]