Leslie's, Inc. (LESL): Can Amy College Steer a Turnaround in the Seasonal Pool Care Market?

The pool care industry is a seasonal behemoth, yet Leslie's, Inc. (NASDAQ: LESL)—the largest U.S. retailer of pool supplies—has struggled to translate that opportunity into consistent profitability. After years of declining revenue and margin pressures, the company has placed its hopes on Amy College, a veteran retail leader with a 25-year track record of transforming supply chains and driving operational efficiency. Her appointment as Chief Merchandising and Supply Chain Officer on July 20, 2025, marks a pivotal moment for a company that has seen its stock price slump by over 40% since 2020.

The Challenge Ahead
Leslie's faces a dual dilemma: a highly seasonal business model and a fragmented market that leaves it vulnerable to inefficiencies. Its reliance on summer sales—accounting for roughly 60% of annual revenue—has created cash flow volatility, while outdated inventory management practices and supply chain bottlenecks have eroded margins. The departure of its former chief merchandising officer, Moyo LaBode, on July 15, 2025, underscored the urgency of finding a leader capable of stabilizing operations and reimagining the company's value proposition.

Enter Amy College.

Amy College: A Turnaround Artist with Retail DNA
College arrives at Leslie's with a resume built on revitalizing supply chains and merchandising strategies at two iconic retailers: Petco (NASDAQ: WOOF) and Best Buy (NYSE: BBY). At Petco, she oversaw a transformation that sharpened the company's focus on pet health and wellness, a shift that helped it weather the post-pandemic slowdown in discretionary spending. Her tenure there included restructuring distribution networks and optimizing inventory turnover—a skill set that could prove vital for Leslie's, where overstocked winter inventory and underutilized summer stock are chronic issues.

Before Petco, College spent two decades at Best Buy, where she held roles ranging from category management to Chief Category Officer for high-margin divisions like home theater and appliances. Her experience there emphasized data-driven demand forecasting and category optimization, which are critical for a company like Leslie's that must balance the volatility of pool season with year-round operations.

Three Pillars of a Potential Turnaround
1. Inventory Management & Cash Flow Stabilization
Leslie's has long grappled with lopsided inventory cycles. College's ability to align supply chain logistics with seasonal demand—think faster restocking of chlorine tablets in April or clearance sales of winter pool covers in November—could dramatically reduce markdowns and free up capital. At Petco, she implemented systems that cut inventory carrying costs by 15% while improving stock availability. If replicated at Leslie's, this could boost gross margins, currently hovering at just 28%—well below industry peers.

1. Digital Marketplace Growth & Partnerships
   Leslie's operates a digital marketplace, but its e-commerce platform lags behind rivals like Pool Corp (POOL), which has built a robust online presence. College's background at Petco, which expanded its online offerings to include pet prescription medications, suggests she could leverage the marketplace to diversify revenue streams. Pairing this with same-day delivery partnerships—think DoorDash for pool supplies—could also attract urban customers, a demographic Leslie's has historically struggled to engage.

2. Operational Synergies from Petco/Best Buy Experience
   The key to College's potential success lies in cross-pollinating strategies from her prior roles. At Best Buy, she mastered category management for high-demand products, a skill directly applicable to Leslie's need to prioritize pool chemicals and equipment during peak seasons. Meanwhile, her work at Petco in demand planning could help Leslie's better anticipate regional variations in pool usage—such as the earlier start to the season in Texas versus the Northeast.

Investment Implications
Leslie's stock trades at just 6.5x its forward EBITDA, a valuation that reflects investor skepticism about its ability to execute a turnaround. However, College's track record suggests this could be a buying opportunity for those willing to bet on operational improvements. Key catalysts include:
- A 10–15% reduction in inventory carrying costs by Q4 2025.
- A 5% gross margin expansion within 18 months.
- E-commerce revenue growing to 20% of total sales from its current 12%.

The risks, of course, remain substantial. The pool care market is cyclical, and extreme weather or economic downturns could depress demand. Competitors like Pool Corp and Leslie's smaller rivals could also undercut pricing. Yet for investors with a long-term view, the undervalued stock could offer asymmetric upside if College's first 100 days—starting July 20—deliver tangible progress.

In the end, Leslie's turnaround hinges on one question: Can a leader who's mastered the art of retail optimization at two Fortune 500 companies now reinvent a seasonal giant? The next 12 months will tell. For now, the odds are worth betting on.

**