Latest news with #LesliesInc
Yahoo
10-05-2025
- Business
- Yahoo
Leslie's price target lowered to $1.25 from $3 at Telsey Advisory
Telsey Advisory lowered the firm's price target on Leslie's (LESL) to $1.25 from $3 and keeps a Market Perform rating on the shares. While the firm likes to hear of the strategic efforts and messaging delivered by the company's leadership team, the firm believes visibility into trends going into this year are clouded, the analyst tells investors. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on LESL: Disclaimer & DisclosureReport an Issue Leslie's price target lowered to $1 from $4 at Loop Capital Leslie's Hold Rating: Balancing Strategic Initiatives with Immediate Challenges Leslie's, Inc. Reports Q2 2025 Results Amid Challenges Leslie's reports Q2 adjusted EPS (25c), consensus (24c) Leslie's backs FY25 adjusted EPS view (1c)-7c, consensus 3c
Yahoo
09-05-2025
- Business
- Yahoo
Leslies Inc (LESL) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Sales: $177.1 million, down from $188.7 million in the prior year. Gross Profit: $43.9 million, compared to $54.3 million in the prior year. Gross Margin: 24.8%, down from 28.8% in the prior year. SG&A Expenses: $92.3 million, up from $84.9 million in the prior year. Adjusted EBITDA: Loss of $36 million. Inventory Reduction: 12% decrease year-over-year, ending at $335.1 million. Pro Sales Improvement: 700 basis point improvement from a 9% decline in the prior year. Conversion Rate Improvement: Increased by 174 basis points year-over-year. Inventory Turns: Improved by 8% year-over-year. Debt Reduction: $27 million reduction in secured term loan, now at $756.7 million. Revolving Credit Facility: $101.5 million outstanding, expected to be repaid in full during the third quarter. Capital Expenditure Reduction: Reduced by $5 million, now expected to be $30 to $35 million for the year. Warning! GuruFocus has detected 8 Warning Signs with LESL. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leslies Inc (NASDAQ:LESL) achieved a 174 basis point improvement in conversion rates, attributed to enhanced in-stock levels and team expertise. The company successfully launched 26 Local Fulfillment Centers (LFCs) on time and under budget, improving inventory management and customer service. Leslies Inc (NASDAQ:LESL) introduced a new loyalty program with tiered benefits, aiming to increase customer engagement and retention. The partnership with Uber for same-day delivery is expected to enhance customer convenience and optimize asset utilization. Pro sales showed a 700 basis point improvement year over year, indicating strong momentum in the professional segment. Sales declined by 6% year over year, primarily due to weaker foot traffic and colder temperatures affecting demand. Gross margin decreased from 28.8% to 24.8%, impacted by increased distribution center and occupancy costs, as well as mix and volume challenges. SG&A expenses rose to 52.1% of net sales, driven by higher labor costs and executive transition expenses. The company reported an adjusted EBITDA loss of $36 million for the quarter, reflecting ongoing financial challenges. Leslies Inc (NASDAQ:LESL) faces tariff exposure estimated at $10 to $12 million annually, which could impact product costs. Q: Can you provide context on Leslie's competitive landscape and market share performance this quarter? A: Jason McDonell, CEO, explained that the quarter's top-line performance was impacted by weather, particularly in January and February. While specific market share numbers are not available due to varied competition across product categories, Leslie's is making significant progress in the pro segment, suggesting a gaining share position. The company is focusing on engaging both pro and DIY customers through initiatives like improved in-stock rates, enhanced mobile app features, and new marketing programs. Q: Could you expand on the strategic pricing increases mentioned, and how they relate to tariffs? A: Tony Iskander, Interim CFO, stated that pricing adjustments will only be made to offset tariff impacts, which represent less than 1% of total sales. Therefore, significant pricing changes are not anticipated. Q: Aside from weather, are there other factors contributing to the comp weakness in Q2? A: Jason McDonell noted that weather was a significant factor, but the company is seeing positive trends in conversion rates, which improved by 174 basis points. This improvement is attributed to better in-stock rates and the expertise of team members, particularly after water tests. Q: How is Leslie's planning for inventory purchases in the second half of 2025, given past slow starts to spring? A: Jason McDonell emphasized a precision inventory mindset, focusing on optimizing inventory levels to improve working capital and reduce debt. Tony Iskander added that inventory optimization will help mitigate tariff impacts by utilizing existing stock. Q: Can you discuss the cost optimization pillar and its impact on the expense ratio? A: Tony Iskander highlighted that the cost optimization pillar focuses on indirect procurement costs, with expected savings of $5 to $10 million. The company is also evaluating asset utilization for further cost efficiencies. Jason McDonell added that local fulfillment centers (LFCs) are helping drive cost efficiency and improve inventory management. Q: How does the partnership with Uber for same-day delivery fit into Leslie's strategy? A: Jason McDonell explained that the partnership with Uber aligns with the company's focus on customer centricity and convenience. It allows Leslie's to fulfill customer needs quickly, reducing delivery times from days to minutes or hours, while also providing cost savings by fulfilling orders locally. Q: What gives Leslie's confidence in reiterating its full-year sales outlook despite Q2 challenges? A: Jason McDonell noted that a significant portion of sales is still expected in the second half of the year. The company is optimistic due to improvements in conversion rates, the launch of new initiatives like the DIY loyalty program, and enhanced customer engagement strategies. Q: What factors contribute to the expected gross margin improvement in the second half of the year? A: Tony Iskander mentioned that the Q4 tailwind from rebate timing will benefit gross margins. Additionally, new initiatives focused on customer centricity and convenience are expected to positively impact margins, despite earlier challenges from mix and lower volume. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-02-2025
- Business
- Yahoo
Leslies Inc (LESL) Q1 2025 Earnings Call Highlights: Navigating Growth in Pro Sales Amidst ...
Revenue: $175 million, up 0.7% compared to the first fiscal quarter of 2024. Pro Pool Sales: Increased 9% year over year. Residential Pool Sales: Declined 1% year over year. Residential Hot Tub Sales: Declined 5% year over year. Adjusted EBITDA: Loss of $29 million. Gross Margin: Decreased 180 basis points to 27.2%. Inventory Reduction: Decreased by $63 million or 19% compared to the prior year quarter. Adjusted Net Loss: $41 million, compared to a loss of $37 million in the same period last year. Adjusted Diluted Loss Per Share: $0.22, compared to a loss of $0.20 in the same period last year. Cash and Cash Equivalents: $12 million at the end of the first quarter. Debt Reduction: Paid down $27 million of debt in the quarter. Store Openings: Plan to open three new stores in fiscal 2025. Warning! GuruFocus has detected 8 Warning Signs with LESL. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leslies Inc (NASDAQ:LESL) reported revenue at the top end of guidance with sales of $175 million, marking a 0.7% increase compared to the first fiscal quarter of 2024. Pro pool sales grew by 9%, driven by better in-stock positions and a double-digit increase in pro partner contracts. The company achieved a 300 basis point improvement in in-stock levels for key categories, enhancing customer conversion rates. Leslies Inc (NASDAQ:LESL) successfully reduced overall inventory by $63 million or 19% year-over-year, improving working capital and enabling debt reduction. The company is establishing local fulfillment centers (LFCS) to improve inventory management and customer service, leveraging existing store networks with minimal capital expenditure. Adjusted EBITDA was at the bottom end of guidance, with a loss of $29 million, impacted by inventory optimization decisions and additional professional fees. Residential pool sales declined by 1% and residential hot tub sales declined by 5%, indicating challenges in these segments. Gross margin rate decreased by 180 basis points to 27.2%, primarily due to increased inventory adjustments and deleverage on occupancy and distribution costs. The company reported an adjusted net loss of $41 million, compared to a loss of $37 million in the same period last year. Leslies Inc (NASDAQ:LESL) faces challenges in improving DIY customer traffic, despite a 160 basis point increase in conversion rates. Q: Can you share any early signs of progress from the transformation initiatives? A: Jason McDonell, Chief Executive Officer, mentioned that they are seeing progress in asset utilization and convenience. Local fulfillment centers (LFCs) are helping adjust inventory levels, improving working capital, and reducing store inventory. This initiative is already showing benefits in inventory efficiency and in-stock reliability, crucial for customer trust. Q: How significant is the issue of out-of-stocks, and do you plan to expand the number of LFCs? A: Jason McDonell emphasized the importance of inventory availability for customer trust. They have improved in-stock positions by 300 basis points. Currently, 26 LFCs are planned, each serving about 20 stores. They will evaluate the performance of these centers before considering further expansion. Q: What are the assumptions behind your revenue outlook, and how do tariffs impact your chemical sales? A: Scott Bowman, Chief Financial Officer, explained that the revenue outlook is cautious due to the uncertain timing and magnitude of benefits from new initiatives. They are not expecting significant tariff impacts as their chemical sourcing is primarily domestic. Q: Can you explain the factors affecting gross margins and the outlook for improvement? A: Scott Bowman noted that gross margins were impacted by inventory adjustments and fixed cost deleverage. They expect margin improvement in the second half of the year due to better inventory management and timing of rebates, which should normalize costs. Q: What drove the 9% growth in the pro segment, and how will you serve both DIY and pro customers? A: The growth was mainly due to increased transactions. Leslie's plans to leverage its entire store network to serve pro customers, focusing on inventory availability and operational hours. They expect these initiatives to benefit the business in the third and fourth quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
