Leslie’s Inc (NASDAQ:LESL) shares fell 44.20% in Wednesday’s after-hours trading after the pool and spa care retailer reported third-quarter 2026 financial results.
The stock closed Wednesday’s regular session up 0.75% at $1.32 before falling 44.20% to $0.74 in after-hours trading.
Leslie’s is a direct-to-customer pool and spa care company serving residential customers and pool professionals across the U.S.
Q3 Sales, Gross Profit Decline
Leslie’s reported third-quarter sales of $458.5 million, down 8.4% from $500.3 million a year earlier. Comparable sales decreased 6.2%.
Gross profit fell 15.5% to $167.1 million, while gross margin declined to 36.5% from 39.6%.
SG&A expenses decreased to $106.4 million from $129.6 million. Adjusted EBITDA fell to $55.7 million from $81.6 million.
Net income increased to $47.8 million from $21.7 million, while adjusted net income rose to $37.8 million from $25.2 million.
Diluted EPS was $5.01, compared with $2.34 a year earlier. Adjusted diluted EPS was $3.96, compared with $2.72.
Strategic Alternatives And Outlook
Leslie’s said it has begun exploring strategic alternatives with certain financial stakeholders to provide additional financial flexibility.
The company said the alternatives may include a deleveraging transaction, potentially combined with one or more financing transactions.
Leslie’s also withdrew its previous full-year fiscal 2026 outlook, citing macroeconomic softness and uncertainty around its ability to drive consumer behavior.
Nine-Month Results
For the first nine months of fiscal 2026, sales fell 7.3% to $790.4 million, while comparable sales declined 5.5%.
Gross profit declined 14.5% to $247.5 million. Adjusted EBITDA was a loss of $11.4 million, compared with positive adjusted EBITDA of $16.2 million a year earlier.
Net loss increased to $87.7 million from $74.2 million, while adjusted net loss increased to $79.7 million from $66 million.
Price Action
Leslie’s has a market capitalization of approximately $12.35 million.
The stock has a 52-week high of $12.53 and a 52-week low of $0.80.
LESL shares were down 77.04% over the past year.
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