Leslie's Closes 80-90 Underperforming Stores to Enhance Financial Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Source: Globenewswire
- Sales Decline: Leslie's reported fourth-quarter sales of $389.2 million, a 2.2% decrease year-over-year, indicating challenges in a competitive market and the urgent need for transformation to restore growth.
- EBITDA Improvement Plan: The company announced the closure of 80-90 underperforming stores and one distribution center, which is expected to yield immediate EBITDA improvements for FY26, reflecting management's urgency in optimizing operations.
- Inventory Efficiency Enhancement: Leslie's achieved approximately a 10% year-over-year reduction in inventory, which not only lowers holding costs but also provides greater flexibility for future pricing competition, aiming to enhance customer value propositions.
- Deteriorating Financial Condition: The net loss for FY2025 reached $237 million, a significant increase from the previous year, highlighting the substantial financial pressures faced during the strategic transformation process.
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Analyst Views on LESL
Wall Street analysts forecast LESL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LESL is 3.45 USD with a low forecast of 3.00 USD and a high forecast of 4.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
5 Hold
0 Sell
Hold
Current: 1.550
Low
3.00
Averages
3.45
High
4.00
Current: 1.550
Low
3.00
Averages
3.45
High
4.00
About LESL
Leslie’s, Inc. is a direct-to-customer brand in the United States pool and spa care industry serving residential customers and pool professionals nationwide. The Company serves the aftermarket needs of residential and professional consumers with an assortment of essential pool and spa care products. More than 80% of its assortment consists of non-discretionary products essential to the care of residential and commercial pools and spas. Its assortment includes chemicals, equipment and parts, cleaning and maintenance equipment, and safety, recreational, and fitness-related products. It also offers essential services, such as equipment installation and repair for residential consumers and professional pool operators. The Company offers complimentary, commercial-grade in-store water testing and analysis via its proprietary AccuBlue system. The Company operates an integrated ecosystem of over 1,000 physical locations and a digital platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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What’s Happening with Leslie's Stock Today?
Mixed Financial Results: Leslie’s, Inc. reported adjusted earnings per share of nine cents, significantly missing the consensus estimate of $1.29, while revenue of $389.20 million exceeded expectations of $370.63 million.
Store Closures and Strategic Changes: The company plans to close 80 to 90 underperforming stores and one distribution center as part of a strategy to improve EBITDA by fiscal 2026, alongside a 10% reduction in inventory.
Impairment Charges and Profit Margins: Leslie's recorded $183.8 million in impairment charges, with gross profit increasing by 4.8% to $150.1 million, despite a 6.5% decline in comparable sales.
Analyst Reactions and Stock Performance: Following the earnings report, analysts adjusted their price targets downward, with Leslie’s shares trading 20.95% lower at $2.83.
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