Leslies | 8-K: 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.

EBIT: As of FY2025 Q3, the actual value is USD 68.32 M.

Segment Revenue

• Sales for the third quarter of fiscal 2025 were $500.3 million, a decrease of 12.2% compared to $569.6 million in the prior year period. Comparable sales decreased by 12.4%.

Operational Metrics

• Gross profit was $197.9 million, a decrease of 13.5% from $228.8 million in the prior year period, with a gross margin of 39.6% compared to 40.2%.
• Selling, general, and administrative expenses were $129.6 million, slightly down from $131.1 million in the prior year period.
• Operating income was $68.3 million, down from $97.7 million in the prior year period.
• Net income was $21.7 million, a significant decrease from $60.7 million in the prior year period.
• Adjusted net income was $37.9 million compared to $63.3 million in the prior year period.
• Adjusted EBITDA was $81.6 million, down from $109.5 million in the prior year period.

Cash Flow

• Net cash used in operating activities was - $39.4 million for the nine months ended June 28, 2025, compared to net cash provided by operating activities of $60.4 million in the prior year period.
• Cash and cash equivalents totaled $42.7 million as of June 28, 2025, a decrease of $31.8 million from $74.4 million as of June 29, 2024.
• Capital expenditures totaled $19.1 million for the nine months ended June 28, 2025, compared to $34.3 million in the prior year period.

Unique Metrics

• Inventories totaled $273.2 million as of June 28, 2025, a decrease of $29.0 million or 9.6% compared to $302.2 million as of June 29, 2024.

Outlook / Guidance

• Leslie’s, Inc. expects full-year fiscal 2025 sales to be between $1,210 million and $1,235 million, with a net loss ranging from $57 million to $65 million.
• Adjusted net loss is projected to be between $31 million and $39 million, and adjusted EBITDA is expected to be between $50 million and $60 million.
• The company believes it has sufficient cash resources to cover its liability obligations through cash on hand and additional cash generated from operations during the fourth quarter.