Leslies | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 500.35 M

Revenue: As of FY2025 Q3, the actual value is USD 500.35 M, missing the estimate of USD 500.5 M.

EPS: As of FY2025 Q3, the actual value is USD 0.12.

Segment Revenue

• Sales for the three months ended June 28, 2025 were $500.3 million, a decrease of $69.3 million or 12.2% compared to the prior year period.
• Sales for the nine months ended June 28, 2025 were $852.7 million, a decrease of $79.6 million or 8.5% compared to the prior year period.

Operational Metrics

• Gross profit for the three months ended June 28, 2025 was $197.9 million, a decrease of $31.0 million or 13.5% compared to the prior year period.
• Gross margin for the three months ended June 28, 2025 decreased to 39.6% from 40.2% in the prior year period.
• Operating income for the three months ended June 28, 2025 was $68.3 million, a decrease from $97.7 million in the prior year period.
• Net income for the three months ended June 28, 2025 was $21.7 million, a decrease from $60.7 million in the prior year period.

Cash Flow

• Net cash used in operating activities for the nine months ended June 28, 2025 was - $39.4 million compared to net cash provided by operating activities of $60.4 million in the prior year period.
• Net cash used in investing activities for the nine months ended June 28, 2025 was - $18.9 million compared to - $34.2 million in the prior year period.
• Net cash used in financing activities for the nine months ended June 28, 2025 was - $7.5 million compared to - $7.1 million in the prior year period.

Unique Metrics

• Adjusted EBITDA for the three months ended June 28, 2025 was $81.6 million, a decrease from $109.5 million in the prior year period.
• Adjusted net income for the three months ended June 28, 2025 was $37.9 million, a decrease from $63.3 million in the prior year period.

Future Outlook and Strategy

• The company is focused on enhancing the execution of existing inventory controls and vendor rebate controls, including hiring personnel with requisite accounting and internal controls knowledge.
• The company anticipates completing remediation activities related to internal control weaknesses during fiscal year 2025.