Leslie's Inc · Q4 2024 earnings

Briefing

Leslie's financial performance aligned with revised expectations, showing strength in the Pro segment but facing challenges in store traffic and discretionary categories. Profitability was impacted by sales decline and a one-time contract item, although SG&A expenses were managed.

Leslie's reported Q4 sales of $397.9 million, a decrease of 8.0% year-over-year, with a net loss of $9.9 million and adjusted EBITDA of $43.0 million. The company faced challenges in store traffic and discretionary categories, but saw strong performance in its Pro segment. Profitability was affected by sales decline and a one-time contract item.

• Sales decreased by 8.0% to $397.9 million, with comparable sales down by 8.3%.
• Gross profit decreased by 10.6% to $143.2 million, and gross margin was 36.0%.
• Net loss was $(9.9) million, compared to a net income of $16.5 million in the prior year period.
• Adjusted EBITDA was $43.0 million, driven by lower sales volume.

Headline financials

Revenue & EPS history

The Company expects the following for the first quarter of fiscal 2025: Sales $169 million to $176 million; Gross profit $45 million to $48 million; Net loss $(41) million to $(39) million; Adjusted net loss $(39) million to $(37) million; Adjusted EBITDA $(29) million to $(27) million; Adjusted diluted loss per share $(0.21) to $(0.20); Diluted weighted average shares outstanding 185 million