Leslie's swings to quarterly loss as higher costs drag profits; shares drop 20%

Investing,com -- Leslies Inc (NASDAQ:LESL ) reported a fourth-quarter loss on Monday, as rising expenses and a one-time charge weighed on its bottom line, sending shares down 20% in after-hours trading.

The company posted a loss of 5 cents per share for the quarter ended September 28, compared with a profit of 9 cents per share a year earlier. Weaker store traffic, lower sales of big-ticket items, and a one-time charge tied to rebates and warranties dragged down its quarterly earnings, the pool company said.

“Profitability was affected by deleverage from the sales decline and a one-time contract item, though we have remained disciplined on SG&A expenses,” said Chief Executive Officer Jason McDonell

Net loss for the quarter was $9.9 million, down from a profit of $16.5 million in the same period last year. Gross margins also fell due to higher occupancy and distribution costs.

However, the company said it had disciplined control of selling, general, and administrative (SG&A) expenses, which declined 4% compared to previous year. 

The company issued 2025 outlook and expects revenue to be between $169 million and $176 million. “While we continue to operate in a dynamic environment, which has been felt acutely across the pool industry for the last two years, I see a bright future and compelling opportunities for Leslie’s," CEO added 

 

Source: Investing.com