Leslie's (LESL) Q4 2024 earnings summary

Executive summary

• New CEO emphasizes customer centricity, convenience, and asset utilization as strategic themes for transformation and long-term growth.

• Fourth quarter sales declined 8.0% year-over-year to $397.9 million; fiscal 2024 sales fell 8.3% to $1,330.1 million.

• CEO highlighted strong Pro segment performance but noted continued softness in store traffic and discretionary categories.

• Industry remains resilient with a large installed base and stable long-term growth prospects.

• Focus on leveraging omnichannel footprint, loyalty program, and personalized service to drive traffic and sales.

Financial highlights

• Q4 sales were $398 million, down 8% year-over-year, in line with revised guidance.

• Fiscal 2024 sales were $1.33 billion, down 8% year-over-year; comparable sales declined 8.8%.

• Q4 adjusted EBITDA was $43 million (vs. $59 million prior year); full-year adjusted EBITDA was $109 million (vs. $168 million prior year).

• Q4 adjusted EPS was $0.02 (vs. $0.14 prior year); full-year adjusted EPS was a loss of $0.01 (vs. $0.28 prior year).

• Gross margin for Q4 was 36%, down 105 bps; excluding a $5 million one-time vendor contract item, gross margin would have been 37.3%, up 20 bps.

Outlook and guidance

• Q1 2025 sales expected between $169 million and $176 million, representing a year-over-year change of -3% to +1%.

• Q1 2025 adjusted EBITDA expected between -$29 million and -$27 million; adjusted net loss of $39 million to $37 million.

• Adjusted diluted loss per share projected at $(0.21) to $(0.20) for Q1.

• No full-year guidance provided due to CEO transition and dynamic macro environment.

• Targeting $25 million debt paydown in Q1; further guidance on debt reduction to be provided in February.