Leslie's, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Leslie's, Inc. (NASDAQ: LESL), the largest direct-to-consumer brand in the U.S. pool and spa care industry, has reported its financial results for the fourth quarter and fiscal year 2024.
Key Financial Metrics
| Financial Metric | Q4 2024 | Q4 2023 | Fiscal 2024 | Fiscal 2023 | Consensus Estimate | Year-over-Year Change | Quarter-over-Quarter Change |
|---|---|---|---|---|---|---|---|
| Total Revenue | $397.9 million | $432.4 million | $1,330.1 million | $1,451.2 million | $405.18 million | -8.0% | -8.3% |
| Diluted EPS | $(0.05) | $0.09 | $(0.13) | $0.15 | $0.11 | -$0.14 | N/A |
| Adjusted Diluted EPS | $0.02 | $0.14 | $(0.01) | $0.28 | N/A | -$0.12 | N/A |
In the fourth quarter, Leslie’s reported revenue of $397.9 million, slightly below the consensus estimate of $405.18 million, marking an 8.0% decrease year-over-year. The diluted EPS was negative both for the fourth quarter at $(0.05) and for the fiscal year at $(0.13), significantly below expectations. The decrease in sales volume and profitability indicates challenges in maintaining growth amidst external market pressures.
Operational Highlights
- Gross profit decreased by 10.6% to $143.2 million, with a gross margin of 36.0%, down from 37.0% year-over-year.
- SG&A expenses decreased by 4.0% to $116.8 million.
- The company established a valuation allowance of approximately $11 million against its deferred tax assets.
- Decreased interest expenses compared to the prior year.
Comments from Management
CEO Jason McDonell commented, 'Our results were in line with revised expectations. We recognize opportunities to leverage the Leslie's brand to drive long-term profitable growth by focusing on customer-centric strategies.'
Forward Guidance
Leslie’s provided select outlooks for the first quarter of fiscal 2025 but did not provide complete forward guidance due to uncertainties affecting future expenses.
Stock Price Movement
Following the earnings release, Leslie's stock increased by 10.50%, reflecting investor optimism despite the revenue and earnings figures falling short of consensus estimates.
In conclusion, while Leslie's faces challenges with overall revenue and profitability, the company’s strategic emphasis on its core segments could present opportunities for improved performance in upcoming quarters. The stock market's positive response highlights investor confidence in the company's future strategy and management’s vision for growth.
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