Leslie's (LESL) Goldman Sachs 31st Annual Global Retailing Conference summary

Leadership transition and executive search

• New CEO Jason McDonell starts soon, following a structured, year-long search process.

• The new leader brings experience from large-scale retail and B2B/B2C operations.

• Leadership change was planned, aligning with the outgoing CEO's five-year window.

Industry trends and post-pandemic normalization

• Pandemic drove a spike in pool installations and equipment upgrades, with growth peaking at 2% before returning to 1%.

• Supply chain disruptions, notably a chlorine plant fire, led to price spikes and temporary sales boosts.

• Sales surged 70% from 2020-2022, then normalized, with a five-year CAGR of about 7%.

• Chemical sales rebounded with improved weather, indicating no market share loss.

Product category performance and outlook

• Chemical business is stable, with recent price adjustments improving competitiveness.

• Equipment sales underperformed, especially discretionary items, due to macroeconomic pressures.

• Hot tub sales, a premium segment, showed sequential improvement and resilience.

• Innovation and repair services are driving some equipment demand, with replacement cycles ongoing.