Leslie's Stock Plunges 27.02% Amid Weather, Debt Woes

On July 29, 2025, Leslie's stock experienced a significant drop of 27.02% in pre-market trading, reflecting a challenging period for the company.

Leslie's has been grappling with a heavy debt load, with a trailing net debt to EBITDA ratio of 13.8 times, which has exacerbated investor concerns. The company's preliminary third-quarter fiscal 2025 results revealed a 12% decline in net sales to $500 million, attributed to extremely wet and unseasonably cool temperatures in key markets. This weather disruption delayed customer pool openings and reduced traffic during the peak pool season, which is crucial for the company's annual revenue.

In response to these challenges, Leslie's has withdrawn its fiscal year 2025 guidance and plans to provide updated expectations on August 6, 2025. The company ended the quarter with $43 million in cash and has paid off its $20 million revolving credit facility, indicating short-term financial flexibility. However, the company is conducting a strategic review to improve sales, profitability, and working capital efficiency across its operations.

Leslie's CEO, Jason McDonell, acknowledged the significant challenges faced during the third quarter and emphasized the company's efforts to accelerate its transformation. The upcoming earnings call on August 6th will be critical for understanding the effectiveness of Leslie's transformation plan and its ability to address both immediate challenges and longer-term competitive positioning in the pool care industry.