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Investing.com -- Leslie’s shares dropped sharply premarket on Tuesday after the pool and spa care retailer posted a double-digit decline in third-quarter sales and withdrew its full-year guidance.
Preliminary results for the fiscal third quarter ended June 28 showed net sales of approximately $500 million, down 12% from the same period last year.
Net income came in between $20 million and $22 million, while adjusted EBITDA was estimated at $79 million to $82 million.
In a statement, CEO Jason McDonell cited "extremely wet and unseasonably cooler temperatures across our top geographies" that disrupted the peak pool season.
“The unfavorable weather trends impacted traffic as many customers delayed pool openings,” he said.
Leslie’s also pulled its fiscal 2025 guidance, citing market conditions and year-to-date performance. The company plans to provide an updated outlook when it releases final Q3 results on August 6.
McDonell said the company continues to conduct a “strategic and operational review” across all aspects of its business and is working with external advisors to accelerate a return to long-term profitable growth.
Loop Capital lowered its price target on the stock to $0.75 from $1.00 in a note to clients, maintaining a Hold rating.
“LESL shares are difficult to recommend at this time,” the firm said, citing limited visibility into an industry recovery, concerns about market share, and what it described as an overly levered balance sheet.