Leslie stock raises on new CEO, maintained guidance

Leslies Inc. saw its stock rise over 2% in premarket trading Tuesday following the announcement of Jason McDonell as the new Chief Executive Officer, effective September 9, 2024. The company said CEO Michael Egeck has departed the company.

The company also reaffirmed its full-year fiscal 2024 guidance, maintaining confidence in its financial outlook.

McDonell brings nearly 30 years of experience in retail and consumer products to Leslie's, having most recently served as Executive Vice President of Merchandising, Marketing, and e-Commerce at Advance Auto Parts (NYSE:AAP ).

His background includes significant roles at PepsiCo (NASDAQ:PEP ), where he led the Canadian Frito-Lay and Quaker businesses.

McDonell expressed excitement about joining Leslie's at this pivotal time, emphasizing the company's strong market position and omnichannel platform.

John Strain, Chairman of the Board, will serve as Interim CEO until McDonell assumes his new role. Strain praised McDonell's leadership abilities and experience, stating that he is well-suited to lead Leslie's into its next chapter.

The leadership transition follows the departure of Michael Egeck, who, according to analysts at Telsey Advisory Group, oversaw significant growth during the pandemic but struggled with financial performance in recent years due to weakened demand and macroeconomic challenges.

The firm noted that while McDonell lacks direct experience in the pool industry, his extensive background in consumer and retail products is relevant to Leslie's focus on omnichannel growth.

However, Telsey remains cautious on the stock, maintaining a Market Perform rating due to ongoing macroeconomic headwinds and soft near-term sales expectations. Despite these challenges, Leslie's reaffirmation of its fiscal 2024 guidance has provided some optimism for investors.

Source: Investing.com