Leslies stock plunges to 52-week low of $0.75 amid market challenges

Published 31/03/2025, 19:18
Leslies stock plunges to 52-week low of $0.75 amid market challenges

Leslies Inc (LESL) stock has hit a 52-week low, dropping to a concerning $0.75. This significant downturn reflects a staggering 1-year change with the company’s stock value plummeting by -87.29%. According to InvestingPro analysis, despite generating $1.33B in revenue and $96.18M in EBITDA, the stock appears undervalued at current levels. Investors are closely monitoring Leslies as it navigates through a tough market period, which has seen its shares fall from grace over the past year. The company, known for its pool and spa supplies, is facing intense pressure as it hits this new low, marking a challenging phase in its financial trajectory. However, InvestingPro data shows some positive indicators: the company maintains a healthy current ratio of 1.76, and analysts forecast a return to profitability this year. Stakeholders are now keenly awaiting the company’s strategic response to this downturn, hoping for a recovery plan that can steer Leslies back towards a more prosperous path. For deeper insights into LESL’s valuation and 13 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Leslie’s Poolmart has experienced several significant developments. Moody’s Ratings downgraded Leslie’s corporate family rating to Caa1, citing concerns over the company’s high leverage and challenging consumer environment. The downgrade reflects expectations of continued below-average operating performance, with a focus on improving customer service and asset utilization. Additionally, S&P Global Ratings also downgraded Leslie’s credit rating from ’B+’ to ’B’ due to increased leverage and compressed profitability, although the outlook remains stable as the company works on strategic initiatives.

Shareholders of Leslie’s Inc. approved amendments to its corporate governance structure, including provisions for director removal without cause and exculpation of certain officers. These changes were ratified during the company’s annual meeting and have been filed with the Delaware Secretary of State. Furthermore, Leslie’s was removed from the S&P SmallCap 600 index, impacting its visibility among investors and liquidity. This change follows the spin-off of SanDisk from Western Digital (NASDAQ:WDC), which will replace Leslie’s in the index.

Telsey Advisory Group adjusted Leslie’s stock price target to $3.00 from $3.75, maintaining a Market Perform rating. This revision follows the company’s first-quarter fiscal 2025 results, which showed adjusted EBITDA below expectations. Despite this, Leslie’s reported positive comparable store sales growth and is implementing strategies such as opening local fulfillment centers to improve inventory solutions. The company continues to face pressure from a challenging macroeconomic environment, which affects consumer spending in discretionary categories.

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