Leslie’s (NASDAQ:LESL) Announces Quarterly Earnings Results

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

Leslie’s stock traded up $2.07 during midday trading on Thursday, reaching $3.50. 41,314,852 shares of the company were exchanged, compared to its average volume of 192,045. The company has a market capitalization of $32.61 million, a price-to-earnings ratio of -0.12 and a beta of 1.53. The firm’s 50-day simple moving average is $1.41 and its 200-day simple moving average is $1.87. Leslie’s has a 1 year low of $0.87 and a 1 year high of $18.56.

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?

Analyst Upgrades and Downgrades

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

Institutional Trading of Leslie’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. increased its position in Leslie’s by 16.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 102,428 shares of the company’s stock worth $169,000 after purchasing an additional 14,840 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in Leslie’s during the 4th quarter worth about $34,000. Barclays PLC purchased a new stake in Leslie’s during the 4th quarter worth about $35,000. Canada Pension Plan Investment Board increased its position in Leslie’s by 38.5% during the 2nd quarter. Canada Pension Plan Investment Board now owns 117,000 shares of the company’s stock worth $49,000 after purchasing an additional 32,500 shares in the last quarter. Finally, Engineers Gate Manager LP increased its position in Leslie’s by 309.7% during the 2nd quarter. Engineers Gate Manager LP now owns 61,474 shares of the company’s stock worth $26,000 after purchasing an additional 46,468 shares in the last quarter.

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.