Leslie's withdraws prior full year outlook on macro softness

Leslie’s (NASDAQ:LESL), a leading pool products retailer, has revised its full-year revenue guidance for 2025, citing ongoing challenges from macroeconomic softness and shifting consumer preferences. The company reported Q3 revenue of $389.2 million, a 2.2% decline year on year and below analyst estimates of $373.5 million. Non-GAAP earnings per share came in at $0.09, significantly below the $1.31 expected by analysts.

The company’s updated full-year revenue guidance now stands at $1.18 billion at the midpoint, a 4.4% reduction from prior estimates. Management attributed the underperformance to a misaligned pricing strategy, which led to a loss of over 160,000 residential customers and an 8.6% decline in residential traffic. CEO Jason McDonell emphasized the need for immediate action, including closure of 80 to 90 underperforming stores and cost optimization initiatives.

Leslie’s also announced plans to adjust pricing on key products to better compete in a value-driven market, even if it means accepting a reduction in gross margin. The company is focusing on improving operational efficiency, streamlining its product offerings, and enhancing the in-store experience to drive basket growth. CFO Jeff White noted that these changes are expected to yield long-term benefits despite short-term margin pressures.