Navigating Challenges: Leslie's Inc. Reports Fiscal Year Results

Leslie's Inc. Financial Overview

PHOENIX — Leslie's, Inc. (NASDAQ: LESL), the leading name in the U.S. pool and spa care industry, has shared its financial outcomes for the fiscal year. Despite facing various industry challenges, the groundwork has been laid for recovery and growth.

Fourth Quarter Performance Highlights

The reported sales for the fourth quarter reached approximately $397.9 million. This marks an 8.0% decline compared to $432.4 million during the same period last year. While comparable sales also saw an 8.3% drop, a small portion of this decline can be attributed to acquisitions and contributions from newly opened stores.

Profitability Insights

Gross profit during the quarter amounted to $143.2 million, reflecting a decrease of 10.6% from the prior year's $160.2 million. Consequently, the gross margin experienced a slight decline, sinking to 36.0% from 37.0% year-over-year. The decreased margin was mainly influenced by higher occupancy and distribution costs.

Aggregate Results for Fiscal 2024

For the year, total sales totaled about $1.33 billion, down 8.3% from $1.45 billion the previous year. Factors contributing to this downturn include ongoing economic challenges affecting consumer behavior. Adjusted net income for the year recorded a loss of $1.1 million versus a gain of $51.1 million in the last fiscal year.

Operational Developments

Throughout the fiscal year, selling, general and administrative expenses totaled $419.7 million, reflecting a decrease from $446 million the previous year, showcasing cost management efforts amidst a challenging backdrop. This year, Leslie's also adjusted its focus on enhancing operational efficiencies.

Cash Flow and Balance Sheet Highlights

As of the end of the fiscal year, cash and cash equivalents stood at $108.5 million, showing a robust increase from $55.4 million in the previous year. Interestingly, inventory has decreased significantly to $234.3 million, down nearly 25% from the previous year, indicating effective inventory management strategies.

Looking Forward: Q1 Fiscal 2025 Projections

For the first quarter of fiscal 2025, Leslie's expects sales in the range of $169 million to $176 million, anticipating improvements as the market gradually recovers. Acknowledging current economic uncertainties, the outlook indicates a cautious but optimistic approach towards achieving financial stability and growth.

Strategic Vision

Jason McDonell, the Chief Executive Officer of Leslie's, shared insights on the company's vision moving forward. He emphasizes prioritizing customer relationships and leveraging the brand’s competitive advantages. Future strategies focus on sustainable growth to ensure long-term profitability, setting the stage for a stronger presence in the market.

Company Contact Information

For further inquiries, individuals can reach out to Matthew Skelly, Vice President of Investor Relations at Leslie's, via email at investorrelations@lesl.com.

Frequently Asked Questions

What were Leslie's total sales for the fourth quarter?

Leslie's reported total sales of approximately $397.9 million for the fourth quarter.

How did the company's gross profit change this year?

The gross profit for the fourth quarter was $143.2 million, down from $160.2 million from the previous year.

What challenges did Leslie's face during fiscal 2024?

The company faced challenges related to lowering consumer demand and competitive market conditions impacting overall sales.

What is the sales forecast for the first quarter of fiscal 2025?

Leslie's anticipates first quarter sales to range between $169 million to $176 million.

Who can be contacted for investor relations at Leslie's?

Matthew Skelly, Vice President of Investor Relations, can be contacted via email at investorrelations@lesl.com.

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