Leslie’s shares sink as full-year guidance disappoints

Published 06/02/2025, 22:44
Leslie’s shares sink as full-year guidance disappoints

PHOENIX - Leslie’s, Inc. (NASDAQ:LESL), the largest direct-to-customer pool and spa care brand in the U.S., reported first-quarter fiscal 2025 results that beat revenue expectations but fell short on earnings. The company’s shares tumbled 7.2% in after-hours trading as its full-year guidance came in below analyst estimates.

For the first quarter ended December 28, 2024, Leslie’s posted revenue of $175.2 million, up 0.7% YoY and above the consensus estimate of $172.93 million. However, the company reported an adjusted loss per share of -$0.22, missing analyst expectations of -$0.21.

Comparable sales increased 0.2%, marking the first positive comp in two years. Despite the revenue growth, Leslie’s saw its gross margin decline 180 basis points to 27.2%, primarily due to inventory adjustments and deleverage on occupancy and distribution costs.

CEO Jason McDonell stated, "We met our revenue expectations for our first quarter of fiscal 2025, reporting our first comparable store sales gain in two years. We saw a number of key categories improve both sequentially and year-over-year."

Looking ahead, Leslie’s provided disappointing guidance for both the second quarter and full fiscal year 2025. For Q2, the company expects revenue between $179-189 million, below the consensus of $189.3 million, and an adjusted loss per share of -$0.25 to -$0.23, worse than the -$0.17 analysts anticipated.

For the full year, Leslie’s projects revenue of $1.304-1.37 billion, compared to the consensus of $1.362 billion. The company’s adjusted EPS guidance of -$0.01 to $0.07 also fell short of analyst expectations of $0.11.

The weak guidance reflects higher anticipated occupancy costs, payroll and benefits, and expenses related to the company’s ongoing transformation initiatives.

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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