Business
Leslie’s, Inc. Announces Third Quarter Fiscal 2023 Financial Results
Sales of $610.9 millionNet income of $72.5 millionAdjusted EBITDA of $129.0 millionDiluted earnings per share of $0.39; Adjusted diluted earnings per share of
About this update from Leslie's, Inc.
[{"type":"text","content":"Sales of $610.9 millionNet income of $72.5 millionAdjusted EBITDA of $129.0 millionDiluted earnings per share of $0.39; Adjusted diluted earnings per share of $0.41 PHOENIX, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Leslie’s, Inc. (“Leslie’s”, “we”, “our” or “its”; NASDAQ: LESL), the largest and most trusted direct-to-consumer brand in the U.S. pool and spa care industry, today announced its financial results for the third quarter of Fiscal 2023. Mike Egeck, Chief Executive Officer, commented, “Our third quarter results fell below our expectations as a result of a highly unusual pool season for Leslie’s and the industry. Unfavorable weather, increased consumer price sensitivity and pool owners with an elevated level of chemicals left over from last year contributed to double-digit traffic declines and a 9% sales decline in the quarter. In addition, we absorbed elevated distribution costs and increased product costs which impacted our margins for the quarter.” Mr. Egeck continued, “As our team is taking the necessary actions to work our way through these headwinds, we also continue to execute towards the long-term market opportunity. The aftermarket pool and spa care industry has proven over time to be one of the most durable and advantaged consumer products categories, and Leslie’s has a long track record of profitable growth in the industry. We remain focused on the execution of our strategic initiatives to drive long-term market share gains and shareholder returns.” Three Months Ended July 1, 2023 Highlights Sales decreased $62.7 million, or 9.3%, to $610.9 million compared to $673.6 million in the prior year period. Comparable sales decreased 11.8% compared to the prior year period driven by double-digit traffic declines. Non-comparable sales including acquisitions and new stores were $16.1 million in the period.Gross profit decreased $52.0 million, or 17.1%, to $251.6 million compared to $303.6 million in the prior year period and gross margin was 41.2% compared to 45.1% in the prior year period. The decrease in gross margin was primarily driven by product margin rate declines associated with increased product costs that could not be passed through to the consumer, elevated distribution expenses and occupancy deleverage.Selling, general and administrative expenses (“SG&A”) increased $4.3 million to $135.8 million compared to $131.5 ...