Acadia Healthcare shares fall as guidance midpoint falls below estimates
PHOENIX - Pool and spa care retailer Leslie’s, Inc. (NASDAQ:LESL), whose stock has declined over 73% year-to-date according to InvestingPro data, announced preliminary third quarter fiscal 2025 results on Monday, reporting net sales of approximately $500 million, representing a 12% decline compared to the same period last year.
The company, currently valued at approximately $120 million in market capitalization, reported preliminary net income between $20 million and $22 million for the quarter ended June 28, with adjusted EBITDA estimated between $79 million and $82 million. Diluted earnings per share are expected to range from $0.11 to $0.12, while adjusted diluted earnings per share are projected between $0.19 and $0.21.
Leslie’s also withdrew its previously provided fiscal year 2025 guidance, citing market conditions and year-to-date performance. The company plans to provide updated expectations for the remainder of the year when it reports complete third quarter results on August 6.
"The extremely wet and unseasonably cooler temperatures across our top geographies disrupted peak pool season," said Jason McDonell, Leslie’s chief executive officer, in the press release. "The unfavorable weather trends impacted traffic as many customers delayed pool openings."
The company reported it had approximately $43 million in cash at the end of the quarter and had paid off $20 million outstanding on its revolving credit facility after the quarter ended.
Leslie’s stated it is conducting a strategic and operational review of its business, focusing on store performance, online operations, distribution centers, cost structure, and initiatives to improve working capital and profitability.
The preliminary results remain subject to quarter-end adjustments and finalization, according to the company’s statement. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 1.56, though four analysts have recently revised their earnings expectations downward. For deeper insights into Leslie’s financial health and future prospects, including 13 additional exclusive ProTips, visit InvestingPro.
In other recent news, Leslie’s announced the appointment of Amy College as the new Chief Merchandising and Supply Chain Officer, effective July 20, 2025. This leadership change comes as the company faces several challenges, including a downgrade of its credit rating by S&P Global Ratings from ’B’ to ’B-’, due to weaker-than-expected business prospects for fiscal 2025. S&P cited ongoing operating challenges and weak consumer spending on pool-related merchandise as factors affecting Leslie’s transformation efforts. Additionally, Mizuho lowered its price target for Leslie’s to $1.00, citing margin pressures and reduced fiscal year 2025 adjusted EBITDA estimates to $98 million.
Meanwhile, Stifel analysts raised their price target for Leslie’s to $0.57, maintaining a Hold rating, despite the company’s second-quarter fiscal year 2025 performance not meeting expectations. Telsey Advisory Group also adjusted its price target for Leslie’s, reducing it from $3.00 to $1.25, while maintaining a Market Perform rating. The firm highlighted ongoing macroeconomic challenges and uncertain trends leading into the pool season as reasons for the adjustment. Despite these challenges, Telsey expressed cautious optimism regarding Leslie’s strategic initiatives and management communication.
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