Leslie's, Inc. Announces First Quarter 2026 Financial Results

Core Insights - Leslie's, Inc. reported financial results for the fiscal first quarter 2026, with sales of $147.1 million, a decrease of 16.0% from $175.2 million in the prior year period, and a net loss of $83.0 million compared to a net loss of $44.6 million in the prior year [2][6][26]. Financial Performance - Sales decreased by 16.0% year-over-year to $147.1 million, with comparable sales down 15.5% [6][26]. - Gross profit fell to $27.1 million, a decrease of 43.3% from $47.7 million in the prior year, leading to a gross margin decline to 18.4% from 27.2% [6][26]. - The company incurred a non-cash impairment charge of $10.1 million related to the closure of 80 underperforming stores and one distribution center [6][26]. - Adjusted EBITDA decreased to $(40.3) million compared to $(29.3) million in the prior year [6][28]. Strategic Initiatives - The CEO highlighted a strategic pricing transformation aimed at value pricing, supported by a new marketing campaign launching for the pool season [3]. - The company is focused on four strategic pillars: customer centricity, convenience, asset utilization, and cost optimization to drive future growth [3]. Operational Changes - The company closed 80 underperforming stores during Q1 2026 to optimize its operations [1][6]. - Inventory efficiency improved with a reduction of approximately 23% year-over-year, totaling $210.0 million as of January 3, 2026 [6][28]. Future Outlook - Leslie's reiterated its full-year guidance for fiscal 2026, expecting sales between $1,100 million and $1,250 million and adjusted EBITDA between $55 million and $75 million [8][9]. - The company anticipates generating the majority of its sales and earnings during the second half of the year due to the seasonal nature of the pool care industry [8].