Leslie’s (NASDAQ:LESL) Issues Earnings Results, Misses Estimates By $0.95 EPS

Leslie’s (NASDAQ:LESL) released its quarterly earnings data on Wednesday. The company reported ($5.36) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($4.41) by ($0.95), FiscalAI reports. The company had revenue of $184.74 million for the quarter, compared to analyst estimates of $162.48 million.

Here are the key takeaways from Leslie’s’ conference call:

• Leslie’s said its fiscal Q2 2026 transformation plan is gaining traction, with revenue up 4.3%, comparable sales up 6.6%, adjusted EBITDA improving 26%, and total customer count up 8%.
• The new Price Drop pricing strategy appears to be working, driving double-digit transaction growth, a more than 350 basis point conversion improvement, and strong customer response, especially in core chemical categories.
• Management highlighted better operational execution, including a restructured field organization, stronger marketing, improved store signage, and expanded convenience options like BOPUS and nationwide Uber same-day delivery.
• Gross margin expanded sharply to 28.9% from 24.8% a year ago, helped by higher sales, lower distribution and occupancy costs, and reduced inventory reserves. Management said some of these benefits are recurring, while the reserve-related boost was one-time.
• The company kept its full-year outlook unchanged, reaffirming 2026 sales of $1.1 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, while noting most sales and earnings are still expected in the second half due to seasonality.

Leslie’s Price Performance

Shares of LESL traded up $2.07 during trading hours on Thursday, hitting $3.50. 41,314,852 shares of the stock were exchanged, compared to its average volume of 192,045. Leslie’s has a fifty-two week low of $0.87 and a fifty-two week high of $18.56. The business has a 50-day moving average of $1.41 and a 200-day moving average of $1.87. The firm has a market capitalization of $32.61 million, a P/E ratio of -0.12 and a beta of 1.53.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Zacks Research upgraded shares of Leslie’s from a “strong sell” rating to a “hold” rating in a research report on Tuesday, March 17th. Morgan Stanley set a $1.00 target price on shares of Leslie’s and gave the stock an “underweight” rating in a report on Wednesday, February 18th. Wolfe Research reissued an “outperform” rating and set a $3.00 target price (up from $2.00) on shares of Leslie’s in a report on Thursday. Weiss Ratings reissued a “sell (e+)” rating on shares of Leslie’s in a report on Wednesday, March 25th. Finally, Mizuho reduced their target price on shares of Leslie’s from $4.00 to $3.50 and set a “neutral” rating on the stock in a report on Friday, May 8th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $2.85.

Institutional Investors Weigh In On Leslie’s

Large investors have recently modified their holdings of the company. Arbiter Partners Capital Management LLC acquired a new stake in shares of Leslie’s during the fourth quarter worth $392,000. Goldman Sachs Group Inc. increased its position in shares of Leslie’s by 16.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 102,428 shares of the company’s stock worth $169,000 after buying an additional 14,840 shares during the period. Man Group plc increased its position in shares of Leslie’s by 87.1% during the second quarter. Man Group plc now owns 1,016,078 shares of the company’s stock worth $427,000 after buying an additional 473,148 shares during the period. Ameriprise Financial Inc. increased its position in shares of Leslie’s by 2,643.2% during the second quarter. Ameriprise Financial Inc. now owns 407,913 shares of the company’s stock worth $171,000 after buying an additional 393,043 shares during the period. Finally, Cerity Partners LLC increased its position in shares of Leslie’s by 269.7% during the second quarter. Cerity Partners LLC now owns 276,532 shares of the company’s stock worth $116,000 after buying an additional 201,731 shares during the period.

Key Stories Impacting Leslie’s

Here are the key news stories impacting Leslie’s this week:

• Positive Sentiment: Leslie’s reported Q2 revenue of $184.74 million, topping analyst expectations of $162.48 million, while sales rose 4.3% year over year and comparable sales increased 6.6%. Leslie’s, Inc. Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company said customer counts grew 8% year over year and reiterated full-year FY2026 guidance, including sales of $1.1 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, which suggests management remains confident in the outlook. Leslie’s reiterates FY2026 sales $1.1B-$1.25B and adjusted EBITDA $55M-$75M as price drop drives traffic
• Positive Sentiment: After-hours trading jumped sharply as investors reacted to the revenue beat and improved margins, indicating the results were strong enough to spark a bullish repricing of the stock. Leslie’s (LESL) Stock Surges Nearly 26% After Hours: What’s Going On?

About Leslie’s

Leslie’s, Inc (NASDAQ: LESL) is the largest direct-to-consumer retailer of swimming pool supplies and related equipment in the United States. Through a network of more than 900 company-operated stores and a robust e-commerce platform, the company offers a comprehensive range of pool chemicals, cleaning tools, pumps, filters, heaters and pool accessories. In addition to product retailing, Leslie’s provides in-store and in-home water testing services, equipment installation, repair and ongoing maintenance programs designed to support both residential and commercial pool owners.

Founded in 1963 in North Miami Beach, Florida, Leslie’s has grown from a single neighborhood pool-supply shop into a national specialty retailer.