Leslie's, Inc. reported a significant decline in financial performance for the fiscal year ending October 4, 2025, with total sales of $1.24 billion, down 6.6% from $1.33 billion in the previous year. The company's gross profit also fell to $439.6 million, a decrease of 7.8% compared to $476.8 million in fiscal 2024. This decline in revenue and profitability was attributed to reduced customer traffic and lower average order values, leading to a comparable sales decrease of 6.8%. The company recorded a net loss of $237 million, a stark contrast to the net income of $27.2 million reported in the prior fiscal year.
In addition to the drop in sales, Leslie's faced substantial impairment charges totaling $183.8 million, primarily related to goodwill. This impairment was a result of a decline in market capitalization and reduced operating performance, prompting a quantitative impairment test that revealed the carrying value of the reporting unit exceeded its fair value. The company's selling, general, and administrative expenses (SG&A) increased slightly to $425.7 million, reflecting higher compensation and professional fees, despite a decrease in marketing expenses.
Operationally, Leslie's maintained a network of over 1,000 retail locations across 39 states, with plans to close approximately 80 to 90 underperforming stores in the upcoming fiscal year. The company also reported a workforce of approximately 3,790 employees, with a focus on enhancing customer engagement through its loyalty program, Pool Perks®, which was revamped to include tiered rewards. The company’s digital strategy continues to evolve, with an emphasis on improving its e-commerce capabilities and expanding its omnichannel presence.
Looking ahead, Leslie's management expressed cautious optimism about future growth, emphasizing the importance of executing its strategic initiatives to drive customer acquisition and retention. The company plans to enhance its marketing strategies, expand its product offerings, and improve operational efficiencies to navigate the challenges posed by macroeconomic conditions, including inflation and changing consumer behaviors. However, the company also acknowledged the risks associated with its substantial debt, which stood at $756.7 million, and the potential impact of ongoing legal proceedings related to securities law violations.
About Leslie's, Inc.
Leslie’s, Inc. is the leading direct-to-consumer provider of pool and spa care products and services in the U.S., offering chemicals, equipment, maintenance, and repair solutions through a nationwide network of over 1,000 locations and a robust digital platform. The company serves residential and professional markets, leveraging proprietary brands, water testing expertise, and integrated marketing to deliver essential, recurring products and services for pool and spa maintenance.
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