Leslies stock plunges to 52-week low at $2.24 amid market challenges

Published 05/12/2024, 21:42
Leslies stock plunges to 52-week low at $2.24 amid market challenges

In a turbulent market environment, Leslies Inc (LESL) stock has tumbled to a 52-week low, touching a price level of just $2.24. According to InvestingPro data, the company's market capitalization has contracted to $418 million, with current financial health metrics indicating a WEAK overall score. The significant drop reflects a challenging year for the company, with the stock experiencing a precipitous decline amid an 8.3% revenue contraction and negative earnings per share of -$0.13. Despite these headwinds, InvestingPro analysis suggests the stock is currently undervalued, with analysts forecasting a return to profitability this year. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of LESL's financial health, valuation metrics, and growth prospects among 1,400+ top stocks covered by InvestingPro.

In other recent news, Leslie's Pool (NASDAQ:POOL) Supplies has been the focus of analyst attention. Baird reduced its price target from $4.00 to $3.50, while maintaining a neutral rating due to margin concerns. Telsey Advisory Group also decreased its price target from $4.00 to $3.75, keeping its Market Perform rating. The revisions followed Leslie's fourth-quarter results, which saw a 25% adjusted EBITDA shortfall and an 8% drop in sales. Leslie's new CEO, Jason McDonell, is leading strategic changes, but full-year guidance was withheld, indicating ongoing adjustments.

Leslie's recent performance saw sales for fiscal year 2024 decline by 8% to $1.33 billion. The company's first-quarter guidance for fiscal year 2025 suggests a range between a 3% decline and a 1% increase. Despite the overall decline, Leslie's e-commerce sales are growing, now making up nearly 20% of total sales. As part of its strategy, Leslie's is pausing new store openings and mergers and acquisitions to prioritize debt reduction. This is the latest in a series of recent developments for Leslie's Pool Supplies.

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