Leslie’s appoints new CEO, reaffirms 2024 outlook

Published 26/08/2024, 21:58
Leslie’s appoints new CEO, reaffirms 2024 outlook

PHOENIX - Leslie’s, Inc. (NASDAQ:LESL), a prominent player in the U.S. pool and spa care market, has named Jason McDonell as its new Chief Executive Officer, with his tenure beginning on September 9, 2024. Concurrently, McDonell will join the company's Board of Directors. Until McDonell takes over, John Strain, the current Chairman of the Board, will serve as the Interim CEO.

This leadership transition comes as Michael Egeck, the former CEO, steps down from his position and his role on the Board. McDonell brings to Leslie's a wealth of experience from his previous role as Executive Vice President at Advance Auto Parts (NYSE:AAP), and a 21-year tenure at PepsiCo (NASDAQ:PEP), where his last position was as Canada President and General Manager for PepsiCo Food.

John Strain expressed confidence in McDonell's capabilities, citing his extensive background in retail, consumer products, and his proven track record in brand building and omnichannel growth. McDonell shared his enthusiasm about joining Leslie’s, highlighting the company’s strong market presence and its potential for sustained growth as the pool industry stabilizes.

In addition to the executive appointment, Leslie’s reaffirmed its fiscal outlook for 2024, consistent with the projections provided on August 7, 2024.

Leslie’s, established in 1963, boasts an extensive network of over 1,000 physical stores and a robust digital platform, catering to both residential and professional consumers in the pool and spa care industry. The company emphasizes its commitment to providing comprehensive solutions and exceptional customer service.

This announcement is based on a press release statement from Leslie’s Inc. and contains forward-looking statements that involve risks and uncertainties. These statements reflect the company's expectations as of the date of the press release and are subject to change.

"In other recent news, Leslie's Inc. has reported key changes in its corporate bylaws, aiming to streamline procedures for stockholder proposals and director nominations. The amendments, approved by the board of directors, also include technical updates to enhance clarity and consistency. In the same vein, Leslie's Inc. revealed its Q3 fiscal 2024 earnings, showing a 7% decrease in total sales year-over-year, amounting to $570 million. The company's gross margin dropped to 40%, with a gross profit of $229 million, and adjusted EBITDA stood at $109 million. Despite the decline in sales, Leslie's Inc. remains focused on long-term growth and strategic initiatives. The company plans to open two new stores by year-end and is working on reducing inventory and improving cost structure. These developments are part of recent efforts by Leslie's Inc. to navigate the market normalization period and aim for long-term profitability."

InvestingPro Insights

As Leslie’s, Inc. (NASDAQ:LESL) welcomes Jason McDonell as its new CEO, the company's financial health and market performance are crucial for investors monitoring the transition. According to InvestingPro data, Leslie's has a market capitalization of $568.61 million, reflecting its standing in the pool and spa care sector. However, the company is trading at a high earnings multiple, with a P/E ratio of 191.25, suggesting a premium valuation compared to earnings. Over the last twelve months, Leslie's has experienced a revenue decline of 8.69%, indicating challenges in sales growth.

InvestingPro Tips highlight that analysts have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year. This could be a critical factor for investors to consider as Leslie's navigates through its leadership changes and reaffirms its fiscal outlook for 2024. Despite these challenges, Leslie's has liquid assets that exceed its short-term obligations, which may provide some financial stability in the near term.

For those interested in a deeper analysis, InvestingPro offers additional insights into Leslie's financials and market performance. There are currently 11 more InvestingPro Tips available, which can provide investors with a more comprehensive understanding of the company's prospects. To access these insights, visit https://www.investing.com/pro/LESL.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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