Leslies 2025 Q4 Earnings Widening Loss Amid Store Closures and Cost Cuts

Leslie’s (LESL) reported fiscal 2025 Q4 results on Dec. 2, 2025, with revenue declining 2.2% to $389.21 million but exceeding Wall Street’s $371.72 million estimate. The company announced plans to close 80–90 underperforming stores and one distribution center to cut costs and inventory, while FY2026 guidance targets $1.1–$1.25 billion in sales and $55–$75 million in adjusted EBITDA.

Revenue

Leslie’s total revenue for Q4 2025 fell to $389.21 million, a 2.2% decline from $397.86 million in the prior year. The company’s sales segment accounted for the full revenue amount, reflecting a challenging retail environment.

Earnings/Net Income

The company’s losses widened dramatically, with a net loss of $162.81 million in Q4 2025, representing a 1,540.6% increase from $9.92 million in the prior-year period. Earnings per share (EPS) deteriorated to -$17.54, a 1,539.3% wider loss compared to -$1.07 in 2024 Q4. The deepening losses underscore persistent operational and financial challenges.

Price Action

Leslie’s shares surged 18.54% in the latest trading day and 21.36% over the past week, but fell 4.02% month-to-date. The stock has lost approximately 92% of its value over the past year, reflecting investor skepticism about its turnaround efforts.

Post-Earnings Price Action Review

The strategy of buying Leslie’s shares 30 days after its earnings report and holding for 30 days yielded no returns over the past three years, with a CAGR of 0.00%. The strategy’s total and excess returns were also 0.00%, and it recorded a maximum drawdown of 0.00%.

CEO Commentary

CEO Jason McDonell emphasized the urgency of the company’s transformation, including store closures, a 10% inventory reduction, and $7–$12 million in cost savings. He stressed the need to rebuild stakeholder confidence and improve balance sheet strength despite a $183.8 million impairment charge in the prior year.

Guidance

Leslie’s outlined FY2026 guidance of $1.1–$1.25 billion in sales, $55–$75 million in adjusted EBITDA, and $20–$25 million in capital expenditures. The outlook assumes cost savings from store closures will offset operational challenges and assumes seasonal sales concentration in the second half of the year.

Additional News

Leslie’s announced plans to close 80–90 underperforming stores and one distribution center, aiming to cut $7–$12 million in costs and reduce inventory by 10%. The stock fell 13% in premarket trading after the announcement, extending its 12-month decline to over 92%. Meanwhile, Telsey Advisory Group maintained a Market Perform rating with a $3.00 price target, citing execution risks and macroeconomic headwinds.

Earnings/Net Income

The company’s losses deepened significantly, indicating ongoing financial challenges despite cost-cutting measures and operational restructuring.