Q1 2026 Leslie's Inc Earnings Call Transcript
Key Points
- Leslies Inc (LESL) reaffirmed its full-year guidance for net sales between $1.1 billion to $1.25 billion and adjusted EBITDA in the range of $55 million to $75 million.
- The company is implementing a pricing transformation initiative to improve pricing for customers, aiming to drive traffic, increase conversion rates, and build customer loyalty.
- Leslies Inc (LESL) has made significant investments in associate training and development programs to enhance customer engagement capabilities.
- The company has successfully closed 80 underperforming locations, capturing cost savings more quickly than projected, which is expected to yield an annualized net EBITDA improvement of $4 million to $10 million.
- Leslies Inc (LESL) is expanding its Uber partnership for same-day delivery, enhancing customer convenience across the United States.
- Leslies Inc (LESL) experienced a net loss of 160,000 residential customers in the past fiscal year, primarily due to customer churn.
- The company reported a 16% decline in net sales for the first quarter compared to the prior year, with comparable sales decreasing by 15.5%.
- Gross profit margin for the first quarter declined significantly to 18.4% from 27.2% in the prior year period.
- Leslies Inc (LESL) recorded a $10.1 million non-cash impairment charge related to the closure of 80 stores and one distribution center.
- The company reported a net loss of $83 million for the first quarter, compared to a net loss of $44.6 million in the prior year.
Good afternoon, and welcome to the fiscal first-quarter 2026 earnings conference call for Leslie's. (Operator Instructions) As a reminder, this conference call is being recorded and will be available for replay later today on the company's website.
I would like to remind everyone that comments made today may include forward-looking statements which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations. These statements speak as of today and will not be updated in the future if circumstances change. Please review the cautionary statements and risk factors contained in the company's earnings press release and recent filings with the SEC.
During the call today, management will refer to certain non-GAAP financial measures. A reconciliation between the GAAP and non-GAAP financial measures can be found in the company's earnings press release, which was furnished to the SEC today and posted to the Investor Relations section of Leslie's website at ir.lesliespool.com.
On the call today
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