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Net Sales (Q4 2025): $389.2 million, a 2.2% decline from the prior year.

Same-Store Sales (Q4 2025): Decreased 6.8% on a 13-week basis compared to fiscal year 2024.

Gross Margin (Q4 2025): Increased to 38.6% from 36% in the prior year period.

Net Loss (Q4 2025): $162.8 million or $17.54 per diluted share.

Adjusted Net Income (Q4 2025): $840,000 or $0.09 per diluted share.

Adjusted EBITDA (Q4 2025): Increased to $45.2 million from $43 million in Q4 2024.

Full Year Sales (2025): Approximately $1.24 billion.

Full Year Inventory (2025): $208 million, a decrease of approximately $26 million or 11% from 2024.

Net Long-Term Debt (Year-End 2025): $752 million.

Store Closures: Announcing closure of 80 to 90 underperforming stores, impacting annual sales by $25 million to $35 million.

Inventory Reduction (2025): Reduced by $26 million year-over-year.

Capital Expenditures (2025): Approximately $25 million.

2026 Sales Guidance: $1.1 billion to $1.25 billion.

2026 Adjusted EBITDA Guidance: $55 million to $75 million.

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Release Date: December 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Leslies Inc (NASDAQ:LESL) successfully completed a smooth transition in the CFO role, welcoming Jeff White, who brings financial and operational retail expertise.

The company implemented immediate actions to improve operations and accelerate financial profitability, including price optimization and cost optimization efforts.

Leslies Inc (NASDAQ:LESL) achieved mid-single-digit growth in units per transaction in the latest quarter, indicating improved customer engagement.

The company is expanding same-day delivery through a partnership with Uber, enhancing convenience for customers.

Leslies Inc (NASDAQ:LESL) is restructuring field teams to integrate services at a local level, aiming to strengthen customer relationships and drive growth.

Leslies Inc (NASDAQ:LESL) experienced a net loss of over 160,000 residential customers and an 8.6% decline in residential traffic in 2025.

The company announced the closure of 80 to 90 underperforming stores, which will result in an annual sales impact of approximately $25 million to $35 million.

Leslies Inc (NASDAQ:LESL) recorded a $184 million impairment charge predominantly related to goodwill and expects further impairment charges in Q1 and Q2 2026.

Same-store sales decreased by 6.8% in the fourth quarter, reflecting a tough macroeconomic environment.

The company anticipates a 100 to 150 basis point impact on product gross margins due to structural adjustments in pricing for core chemical products.

Q: Are your supplier partners fully supporting your turnaround efforts, and are you getting the right allocation of products at normal payment terms? A: Jason McDonell, CEO: Our vendor partners have been great, supporting our transformation efforts. We've improved our in-stock positions by over 400 basis points, which has been crucial for our success. Jeff White, CFO: SKU optimization helps us provide better forecasts to vendors, ensuring timely inventory delivery.

Q: How much of the EBITDA guide for this year do you expect to convert into free cash flow? A: Jeff White, CFO: While we didn't provide a free cash flow guide, at the midpoint of our EBITDA guidance, we assume free cash flow positivity. Variations may occur, but the midpoint suggests a positive free cash flow for the year.

Q: Can you elaborate on your pricing strategy and where you see the most opportunity for price investments? A: Jason McDonell, CEO: Our focus is on key value items, mainly in chemicals like chlorine tabs, where we have vertical integration. We aim to be competitive with specialty retailers and slightly ahead of big box stores. Recent aggressive pricing in the market has influenced our strategy, and we plan to maintain this focus.

Q: Regarding store closures, is there potential for more closures if sales recovery doesn't materialize? A: Jeff White, CFO: The current closures target unprofitable stores. Most remaining stores are profitable, but we will continue to evaluate and optimize our store base as needed, always looking for opportunities to improve profitability.

Q: How are you addressing the loss of 160,000 retail customers, and what are the costs involved in regaining them? A: Jason McDonell, CEO: About 80% of lost customers were switchers, and we have detailed data on them through our Pool Perks program. We are targeting them with efficient, customized marketing offers to bring them back, leveraging our expertise and improved price value. Jeff White, CFO: Our 2026 guide does not imply increased marketing spend but rather a redeployment for more effective targeting.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.