Leslie's(US:LESL)2025-12-02 21:30Financial Performance - Fourth quarter sales were $389.2 million, a decrease of 2.2% compared to $397.9 million in the prior year period[3]. - Adjusted EBITDA increased to $45.2 million compared to $43.0 million in the prior year period[3]. - The net loss for the fourth quarter was $(162.8) million compared to $(9.9) million in the prior year period[3]. - Full year fiscal 2025 sales were $1,242.0 million, a decrease of 6.6% compared to $1,330.1 million in the prior year[9]. - Gross profit for the fourth quarter was $150.1 million, an increase of 4.8% compared to $143.2 million in the prior year[3]. - Basic and diluted earnings per share for the three months ended October 4, 2025, were both $(17.54), compared to $(1.07) for the same period in 2024[23]. - Adjusted net income for the year ended October 4, 2025, was $(43,664), compared to $(1,084) for the year ended September 28, 2024[25]. Impairments and Valuation - The company recorded an impairment of $183.8 million, including $180.7 million for goodwill[3][9]. - The company incurred impairments of $183,826 for the three months ended October 4, 2025, with no impairments reported for the same period in 2024[23]. - The company reported a non-cash change in valuation allowance for deferred taxes, impacting income tax benefit (expense) in the condensed consolidated statements of operations[35]. - The tax effect of total adjustments was based on the combined U.S. federal and state statutory tax rates, reflected in income tax benefit (expense) in the condensed consolidated statements of operations[35]. Store Closures and Operational Changes - The company plans to close 80 to 90 underperforming stores and one distribution center, which is expected to yield immediate EBITDA improvement for FY26[1][2]. - Inventory efficiency improved with a year-over-year reduction of approximately 10%[1][2]. Future Projections - Fiscal 2026 sales guidance is projected between $1,100 million and $1,250 million, with adjusted EBITDA expected between $55 million and $75 million[6]. Cash and Assets - Cash and cash equivalents totaled $64.3 million as of October 4, 2025, a decrease of $44.2 million compared to $108.5 million as of September 28, 2024[9]. - Total current assets decreased to $328,789 as of October 4, 2025, from $422,434 as of September 28, 2024[28]. - Total liabilities decreased to $1,149,467 as of October 4, 2025, from $1,227,474 as of September 28, 2024[28]. - The company had cash and cash equivalents of $64,340 as of October 4, 2025, down from $108,505 as of September 28, 2024[28]. Sales Data - Total sales for the three months ended October 4, 2025, were $389,206, a decrease of 2% from $397,859 for the same period in 2024[23]. - Gross profit for the three months ended October 4, 2025, was $150,094, an increase of 5.1% compared to $143,214 for the same period in 2024[23]. - Adjusted EBITDA for the three months ended October 4, 2025, was $45,163, an increase from $42,972 for the same period in 2024[25].