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Jun 28
Leslie's Q3 2025 Earnings Report
Leslie's reported financial results for the third quarter of fiscal 2025, with sales and profitability below expectations due to challenging weather and competitive pricing.
Key Takeaways
Leslie's experienced a challenging third quarter in fiscal 2025, with sales decreasing by 12.2% to $500.3 million and net income significantly dropping to $21.7 million from $60.7 million in the prior year. The company cited significant headwinds from weather and competitive pricing dynamics during its peak selling season.
Sales for the third quarter of fiscal 2025 were $500.3 million, a 12.2% decrease compared to $569.6 million in the prior year period.
Net income for the quarter was $21.7 million, a substantial decline from $60.7 million in the prior year period.
Diluted earnings per share decreased to $0.12 from $0.33 in the prior year period, while adjusted diluted earnings per share was $0.20.
Gross profit was $197.9 million, down 13.5% from the prior year, and gross margin was 39.6% compared to 40.2%.
Leslie's
Leslie's
Forward Guidance
Leslie's updated its full-year fiscal 2025 expectations, projecting sales between $1,210 million and $1,235 million, a net loss of $57 million to $65 million, and adjusted net loss of $31 million to $39 million. Adjusted EBITDA is expected to be between $50 million and $60 million.
Positive Outlook
- Sufficient cash on hand and expected cash generation from Q4 operations to cover liability obligations.
- Strategic and operational review underway to stabilize and position for long-term growth.
- Commitment to accelerate key initiatives to drive improved profitability.
- Bringing on additional resources to provide expert support for strategic priorities.
- Team working diligently to deliver meaningful progress.
Challenges Ahead
- Updated full-year sales guidance of $1,210 million to $1,235 million, indicating a potential decrease from previous expectations.
- Projected full-year net loss of $57 million to $65 million.
- Projected full-year adjusted net loss of $31 million to $39 million.
- Projected full-year Adjusted EBITDA of $50 million to $60 million, lower than prior year's nine-month adjusted EBITDA.
- Uncertainty of expenses that may be incurred in the future, making reconciliation of non-GAAP guidance to GAAP measures difficult.