Leslie's, Inc. Announces Second Quarter Fiscal 2025 Financial Results; Re-Affirms Full Year Guidance

Core Viewpoint - Leslie's, Inc. reported a decrease in sales and significant net losses for the second quarter of fiscal 2025, while emphasizing a commitment to strategic transformation and operational improvements [2][4][5]. Financial Results - Sales for the second quarter were $177.1 million, down 6.1% from $188.7 million in the same period last year [5]. - Comparable sales decreased by 6.7%, with new stores contributing $0.9 million [5]. - Gross profit was $43.9 million, a decrease of 19.1% compared to $54.3 million in the prior year, resulting in a gross margin of 24.8% [5]. - Selling, general and administrative expenses increased to $92.3 million from $84.9 million [5]. - The operating loss was $48.4 million, compared to a loss of $30.5 million in the prior year [5]. - Net loss for the quarter was $51.3 million, compared to a loss of $34.6 million in the prior year [5]. - Adjusted EBITDA was $(36.1) million, worsening from $(19.3) million in the prior year [5]. Full Year Fiscal 2025 Outlook - The company reiterated its full-year fiscal 2025 outlook, projecting sales between $1,304 million and $1,370 million, and adjusted EBITDA between $96 million and $116 million [4]. - Expected adjusted net loss ranges from $(2) million to $13 million, with adjusted diluted loss per share between $(0.01) and $0.07 [4]. Cash and Inventory Management - Cash and cash equivalents increased to $17.3 million as of March 29, 2025, from $8.4 million a year earlier [5]. - Inventories decreased by 11.6% to $335.1 million compared to $379.1 million as of March 30, 2024 [5]. Strategic Focus - The CEO highlighted a focus on customer centricity, convenience, and asset utilization, with early indicators of progress being observed [2]. - The company is committed to maximizing cash flow, reducing leverage, and driving long-term value for stakeholders [2].