Leslie's (LESL) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 2025 was challenging, with sales down 12.2% year-over-year to $500.3 million due to persistent macro pressures, adverse weather, and increased competition.

• Net income for the quarter was $21.7 million, a decrease of $38.9 million from the prior year.

• Strategic transformation and operational review are underway, focusing on customer centricity, convenience, asset utilization, and cost optimization, with additional resources engaged.

• A new Chief Merchandising and Supply Chain Officer joined to accelerate transformation.

• The company operates over 1,000 locations in 39 states and maintains a leading U.S. market share.

Financial highlights

• Net sales for Q3 were $500.3 million, down 12.2% year-over-year; comparable sales declined 12.4%.

• Gross profit was $197.9 million, down 13.5% year-over-year; gross margin declined to 39.6%, a 62 basis point decrease.

• SG&A expenses were $129.6 million, down 1.2% from the prior year, reflecting cost controls.

• Adjusted EBITDA for the quarter was $81.6 million, down from $109.5 million year-over-year.

• Net income was $21.7 million, down from $60.7 million; diluted EPS was $0.12, down from $0.33.

Outlook and guidance

• Full-year 2025 sales expected at $1.21–$1.235 billion.

• Net loss projected at $57–$65 million; adjusted net loss $31–$39 million; adjusted EBITDA $50–$60 million.

• Capital spend for the year expected to be about $30 million.

• Management expects cash and borrowing capacity to be sufficient for obligations over the next 12 months.

• Internal control remediation is anticipated to be completed during fiscal 2025.