What is the revenue and EPS growth rate for Leslie's year over year?

What is Leslie's's gross profit margin?

What is the market's earnings forecast for Leslie's next quarter?

What factors drove the changes in Leslie's's revenue and profit?

What does Leslie's do and what are its main business segments?

What guidance did Leslie's's management provide for the next earnings period?

What were the key takeaways from Leslie's's earnings call?

What were the key takeaways from Leslie's’s earnings call?

- **Store Closure Impact**: 80-90 stores closed to improve EBITDA by $4M-$10M, despite $25M-$35M sales loss.
- **Inventory Efficiency**: $26M inventory reduction in 2025, targeting $20M-$40M more in 2026.
- **Customer Re-engagement**: 160,000 lost customers targeted with personalized offers, leveraging zero-party data.
- **2026 Financial Outlook**: Sales $1.1B-$1.25B, EBITDA $55M-$75M, with free cash flow positivity assumed.
- **Pricing Strategy**: Chemicals will be everyday value-priced, with 100-150bps gross margin decline offset by cost savings.

**【CEO Summary Section】**
- Announced closure of 80-90 underperforming stores, reducing annual sales by $25M-$35M but improving EBITDA by $4M-$10M annually.
- Reduced SKU count by over 2,000, targeting $4M-$5M in EBITDA savings.
- Launched precision marketing to regain 160,000 lost customers using zero-party data and personalized offers.
- Expanded pool maintenance services in California and Florida, achieving double-digit sales growth.
- Streamlined distribution network to 5 DCs, reducing costs by $1M annually.

**【CFO Financial Commentary】**
- Q4 2025 net sales: $389.2M (down 2.2% YoY), adjusted EBITDA: $45.2M (up 5% YoY).
- 2026 guidance: Sales $1.1B-$1.25B, adjusted EBITDA $55M-$75M.
- Inventory reduced by $26M YoY, with plans to cut another $20M-$40M in 2026.
- Gross margin expected to decline 100-150bps due to pricing investments, offset by SG&A efficiency.
- Free cash flow positivity assumed at midpoint of EBITDA guidance.

**【Q&A Highlights】**
- **Supplier Support**: Vendors appreciate improved forecasting and inventory management, ensuring product allocation and payment terms.
- **Customer Recovery**: 80% of lost customers are Pool Perks members; targeted marketing and price adjustments aim to re-engage them efficiently.
- **Competitive Pricing**: Chemicals will be everyday value-priced, with 100-150bps gross margin impact, offset by operational savings.
- **Store Optimization**: Remaining stores are profitable, but further closures may occur if sales trends worsen.
- **Free Cash Flow**: Midpoint of EBITDA guide assumes positive free cash flow, driven by cost savings and inventory management.

Leslie's, Inc. (LESL) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LESL

LESL fundamentals

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