Overview

* Leslie's fiscal Q3 sales fall 12.2% yr/yr to $500.3 million, amid challenging market conditions

* Adjusted EPS and net income miss analyst expectations, per LSEG data

* Adjusted EBITDA also falls short of estimates, reflecting operational difficulties

Outlook

* Leslie's expects full-year sales of $1,210 mln to $1,235 mln

* Company projects full-year net loss of $57 mln to $65 mln

* Leslie's forecasts adjusted EBITDA of $50 mln to $60 mln

* Company anticipates adjusted net loss of $31 mln to $39 mln

Result Drivers

* WEATHER IMPACT - Leslie's cites adverse weather conditions as a significant factor affecting sales during peak season

* COMPETITIVE PRICING - Competitive pricing dynamics contributed to a challenging sales environment, per CEO Jason McDonell

* COST ALIGNMENT - Company reduced labor hours to align with decreased demand and store traffic

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $0.2 $0.28

Adjusted (12

EPS Analysts

)

Q3 EPS $0.12

Q3 Miss $37.90 $49.80

Adjusted mln mln (9

Net Analysts

Income )

Q3 Net $21.70

Income mln

Q3 Miss $81.60 $89.90

Adjusted mln mln (9

EBITDA Analysts

)

Q3 Miss $68.30 $84.70

Operatin mln mln (9

g Income Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

* Wall Street's median 12-month price target for Leslie's Inc is $0.75, about 53.3% above its August 5 closing price of $0.35

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)