Leslie's (NASDAQ:LESL) Reports Mixed Q4 Results; Revenue Beats, EPS Misses



PHOENIX, Feb. 06, 2025 (GLOBE NEWSWIRE) - Leslie's, Inc. ("Leslie's" or "the Company"; NASDAQ: LESL), the leading direct-to-customer brand in the U.S. pool and spa care industry, announced its financial results for the first quarter of fiscal 2025.

Q4 CY2024 Highlights:

* Revenue: $175.2 million, exceeding analyst estimates of $173.6 million (+0.9% beat)
* Adjusted EPS: -$0.22, missing analyst consensus of -$0.21 (5.8% miss)
* Adjusted EBITDA: -$29.32 million, below analyst expectations of -$27.55 million (6.4% miss)
* Revenue Guidance Q1 CY2025: $184 million, below analyst estimates of $189.9 million
* Adjusted EPS Guidance Q1 CY2025: -$0.24, below analyst estimates of -$0.17
* EBITDA Guidance Q1 CY2025: -$35.5 million, below analyst estimates of -$19.32 million
* Operating Margin: -22.7%, down from -21% in Q4 CY2023
* Free Cash Flow: -$109.8 million, compared to -$82.61 million in Q4 CY2023
* Locations: 1,000 at quarter end, down from 1,007 in Q4 CY2023
* Same-Store Sales: Flat year-on-year (-11.7% in Q4 CY2023)

Company Overview:

Leslie's is a specialty retailer focused on pool and spa supplies, equipment, and maintenance services for residential customers and pool professionals. With a history dating back to 1963, Leslie's has a well-established brand and a nationwide network of stores.

Sales Growth:

Leslie's has shown modest revenue growth of 7.3% annualized over the past five years, driven by the increasing popularity of home pools and spas. However, the Company's sales growth is forecasted to decelerate in the next 12 months, with analysts expecting a 3.2% increase.

Store Performance:

* Number of Stores: Leslie's operates 1,000 locations, with a steady growth rate of 1.6% over the past two years.
* Same-Store Sales: Leslie's has experienced declining same-store sales, averaging a 9.4% annual reduction over the past two years. In Q4 CY2024, same-store sales were flat year-on-year, indicating a potential turnaround.

Key Takeaways:

Leslie's Q4 results were mixed, with revenue beating estimates but EPS and EBITDA guidance falling short. The Company's declining same-store sales remain a concern, but the flat performance in Q4 suggests improvement. Overall, the stock's 8% decline after earnings reflects investor caution. While Leslie's faces challenges, the Company's strong brand and focus on the growing pool and spa market provide potential growth opportunities.