Leslie's Q2 Earnings Show Growth Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: seekingalpha
- Revenue Growth: Leslie's reported a 4.3% increase in revenue for Q2 2026, reaching $184.7 million, demonstrating the company's market resilience under its transformation plan despite the closure of 80 stores.
- Customer Growth: The company noted an 8% increase in total customer count, with reactivated customers growing over 25%, indicating that the new pricing strategy effectively enhanced customer loyalty and market share, bolstering future profitability potential.
- Margin Improvement: The gross profit margin for Q2 was 28.9%, significantly up from 24.8% in the prior year, reflecting the company's success in cost control and sales strategies, which are expected to further drive overall profitability.
- EBITDA Performance: Adjusted EBITDA improved to negative $26.8 million, a $9.2 million improvement year-over-year, indicating positive progress in operational efficiency and cost management, despite still being in a loss position.
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Analyst Views on LESL
Wall Street analysts forecast LESL stock price to fall
5 Analyst Rating
0 Buy
5 Hold
0 Sell
Hold
Current: 3.820
Low
3.00
Averages
3.45
High
4.00
Current: 3.820
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.
Leslie's Q1 Results Exceed Revenue Expectations
- Strong Performance: Leslie's reported Q1 sales of $184.7 million, a 4.3% year-on-year increase that surpassed analyst expectations of $162.8 million, indicating robust market performance and growth potential.
- Adjusted EPS Loss: The company reported an adjusted loss of $5.36 per share, which was worse than the expected loss of $4.41, highlighting the need for ongoing focus on cost control and profitability despite revenue growth.
- Successful Customer Reactivation: Through targeted marketing and localized outreach, Leslie's achieved over 25% growth in reactivated customers, contributing to overall customer count growth and demonstrating effective customer relationship management strategies.
- Impact of Price Drop Initiative: The launch of the Price Drop initiative in Sunbelt markets significantly increased in-store traffic and conversion rates, driving double-digit growth in key chemical categories, showcasing the company's proactive response to market competition.
See More
Leslie's Q2 Earnings Show Growth Momentum
- Revenue Growth: Leslie's reported a 4.3% increase in revenue for Q2 2026, reaching $184.7 million, demonstrating the company's market resilience under its transformation plan despite the closure of 80 stores.
- Customer Growth: The company noted an 8% increase in total customer count, with reactivated customers growing over 25%, indicating that the new pricing strategy effectively enhanced customer loyalty and market share, bolstering future profitability potential.
- Margin Improvement: The gross profit margin for Q2 was 28.9%, significantly up from 24.8% in the prior year, reflecting the company's success in cost control and sales strategies, which are expected to further drive overall profitability.
- EBITDA Performance: Adjusted EBITDA improved to negative $26.8 million, a $9.2 million improvement year-over-year, indicating positive progress in operational efficiency and cost management, despite still being in a loss position.
See More
Leslie's (LESL) Q4 2025 Earnings Call Transcript
See More
Leslie's (LESL) Q3 2025 Earnings Call Transcript
See More
Leslie's, Inc. Q1 2026 Earnings Call Insights
- Sales Guidance Reaffirmed: Leslie's projects full-year net sales between $1.1 billion and $1.25 billion, with adjusted EBITDA ranging from $55 million to $75 million, despite first-quarter sales of $147.1 million reflecting a 16% year-over-year decline, indicating market challenges.
- Customer Loss Mitigation: The company lost 160,000 residential customers last year, and management aims to enhance customer traffic and loyalty through a nationwide pricing strategy, although gross margin pressure is anticipated, with a projected decline of 100 to 150 basis points for fiscal 2026.
- Store Optimization Progress: Leslie's closed 80 underperforming locations, with approximately 80% of these closures occurring within seven days of the announcement, expected to impact annual sales by $25 million to $35 million, while annualized EBITDA improvement is projected between $4 million and $10 million.
- Cost Reduction Initiatives: The company anticipates achieving $7 million to $12 million in annualized savings through expense reduction measures, with benefits expected to materialize in the second half of 2026, although management remains cautious about the sustainability of pricing changes.
See More
Leslie's Q1 Earnings: EPS Beats Expectations but Revenue Declines
- Earnings Beat Expectations: Leslie's reported a Q1 non-GAAP EPS of $5.24, exceeding expectations by $9.48, indicating resilience in profitability despite overall revenue decline.
- Significant Revenue Decline: The company posted revenue of $147.1 million, a 16.1% year-over-year decrease, missing expectations, reflecting weak market demand and the impact of store closures.
- Gross Margin Decline: Gross profit fell to $27.1 million, down 43.3% year-over-year, with gross margin decreasing to 18.4%, primarily due to a $6.4 million non-cash impairment charge and lower product margins on core chemicals.
- Slight Improvement in Cost Control: Selling, general, and administrative expenses were $85.7 million, down from $87.4 million in the prior year, demonstrating the company's efforts in cost management, although overall financial performance remains under pressure.
See More
Leslie's Q1 Results Exceed Revenue Expectations
- Strong Performance: Leslie's reported Q1 sales of $184.7 million, a 4.3% year-on-year increase that surpassed analyst expectations of $162.8 million, indicating robust market performance and growth potential.
- Adjusted EPS Loss: The company reported an adjusted loss of $5.36 per share, which was worse than the expected loss of $4.41, highlighting the need for ongoing focus on cost control and profitability despite revenue growth.
- Successful Customer Reactivation: Through targeted marketing and localized outreach, Leslie's achieved over 25% growth in reactivated customers, contributing to overall customer count growth and demonstrating effective customer relationship management strategies.
- Impact of Price Drop Initiative: The launch of the Price Drop initiative in Sunbelt markets significantly increased in-store traffic and conversion rates, driving double-digit growth in key chemical categories, showcasing the company's proactive response to market competition.
See More
Leslie's Q2 Earnings Show Growth Momentum
- Revenue Growth: Leslie's reported a 4.3% increase in revenue for Q2 2026, reaching $184.7 million, demonstrating the company's market resilience under its transformation plan despite the closure of 80 stores.
- Customer Growth: The company noted an 8% increase in total customer count, with reactivated customers growing over 25%, indicating that the new pricing strategy effectively enhanced customer loyalty and market share, bolstering future profitability potential.
- Margin Improvement: The gross profit margin for Q2 was 28.9%, significantly up from 24.8% in the prior year, reflecting the company's success in cost control and sales strategies, which are expected to further drive overall profitability.
- EBITDA Performance: Adjusted EBITDA improved to negative $26.8 million, a $9.2 million improvement year-over-year, indicating positive progress in operational efficiency and cost management, despite still being in a loss position.
See More
Leslie's (LESL) Q4 2025 Earnings Call Transcript
See More
Leslie's (LESL) Q3 2025 Earnings Call Transcript
See More
Leslie's, Inc. Q1 2026 Earnings Call Insights
- Sales Guidance Reaffirmed: Leslie's projects full-year net sales between $1.1 billion and $1.25 billion, with adjusted EBITDA ranging from $55 million to $75 million, despite first-quarter sales of $147.1 million reflecting a 16% year-over-year decline, indicating market challenges.
- Customer Loss Mitigation: The company lost 160,000 residential customers last year, and management aims to enhance customer traffic and loyalty through a nationwide pricing strategy, although gross margin pressure is anticipated, with a projected decline of 100 to 150 basis points for fiscal 2026.
- Store Optimization Progress: Leslie's closed 80 underperforming locations, with approximately 80% of these closures occurring within seven days of the announcement, expected to impact annual sales by $25 million to $35 million, while annualized EBITDA improvement is projected between $4 million and $10 million.
- Cost Reduction Initiatives: The company anticipates achieving $7 million to $12 million in annualized savings through expense reduction measures, with benefits expected to materialize in the second half of 2026, although management remains cautious about the sustainability of pricing changes.
See More
Leslie's Q1 Earnings: EPS Beats Expectations but Revenue Declines
- Earnings Beat Expectations: Leslie's reported a Q1 non-GAAP EPS of $5.24, exceeding expectations by $9.48, indicating resilience in profitability despite overall revenue decline.
- Significant Revenue Decline: The company posted revenue of $147.1 million, a 16.1% year-over-year decrease, missing expectations, reflecting weak market demand and the impact of store closures.
- Gross Margin Decline: Gross profit fell to $27.1 million, down 43.3% year-over-year, with gross margin decreasing to 18.4%, primarily due to a $6.4 million non-cash impairment charge and lower product margins on core chemicals.
- Slight Improvement in Cost Control: Selling, general, and administrative expenses were $85.7 million, down from $87.4 million in the prior year, demonstrating the company's efforts in cost management, although overall financial performance remains under pressure.
See More
