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In a stark reflection of the challenges facing the retail sector, Leslie’s Inc (LESL) stock has tumbled to a 52-week low, touching down at $1.29. InvestingPro data shows the company’s revenue declined 6.9% in the last twelve months, while technical indicators suggest the stock is currently in oversold territory. This significant downturn marks a precipitous decline for the pool and spa supplies retailer, which has seen its stock value erode by an alarming 82.51% over the past year. Investors have watched with concern as Leslie’s struggles to navigate a turbulent market environment, with the latest price level highlighting the intensity of the headwinds the company faces. The 52-week low serves as a critical juncture for Leslie’s, as it seeks to reassess its strategies and regain its footing in a competitive landscape. Nine analysts have recently revised their earnings expectations downward, though the company maintains a healthy current ratio of 1.76. For deeper insights and additional analysis, including Fair Value estimates and comprehensive financial health scores, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Leslie’s, Inc. reported its first-quarter fiscal 2025 results, which showed revenue of $175.2 million, surpassing expectations of $172.93 million. However, the company posted an adjusted loss per share of -$0.22, missing the anticipated -$0.21. S&P Global Ratings downgraded Leslie’s credit rating from ’B+’ to ’B’, citing increased leverage and ongoing profitability challenges. Despite these challenges, Leslie’s experienced a slight positive comparable store sales growth for the first time in two years, with improvements in key product categories.
The company also announced disappointing guidance for the second quarter and full fiscal year 2025, projecting revenue and earnings below analyst estimates. Telsey Advisory Group responded by lowering its price target for Leslie’s shares from $3.75 to $3.00, maintaining a Market Perform rating. Leslie’s is implementing strategic initiatives, including the conversion of commercial service centers into local fulfillment centers, to enhance product availability and customer service.
Additionally, Leslie’s is set to be removed from the S&P SmallCap 600 index due to its reduced market capitalization. This change is expected to affect the stock’s visibility and liquidity as index funds adjust their portfolios. Despite these developments, Leslie’s remains focused on executing its strategic initiatives to stabilize demand and improve financial performance.
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