Leslie's, Inc. (LESL) Bundle
A Brief History of Leslie's, Inc.
Leslie's, Inc. (NASDAQ: LESL), a prominent retailer in the pool and spa supply industry, has undergone significant changes and developments as of 2024. Founded in 1963, the company has grown to become a leading provider of pool and spa products, operating over 1,020 locations across the United States.
Financial Performance Overview
As of June 29, 2024, Leslie's reported total sales of $569.6 million for the three months ended, representing a decrease of 6.8% from $610.9 million in the prior year. For the nine months period, sales decreased to $932.3 million from $1,018.8 million, a decline of 9.3% year-over-year.
Period | Sales ($ Million) | Change (%) |
---|---|---|
Q3 2024 | 569.6 | -6.8 |
9 Months 2024 | 932.3 | -9.3 |
Gross Profit and Margin
Gross profit for the three months ended June 29, 2024, was $228.8 million, down from $251.6 million in the prior year, marking a decrease of 9.9%. The gross margin decreased to 40.2% compared to 41.2% the previous year. For the nine months, gross profit fell to $333.6 million, down 16.3% from $388.1 million, with gross margin at 35.8%, down from 38.1%.
Period | Gross Profit ($ Million) | Gross Margin (%) |
---|---|---|
Q3 2024 | 228.8 | 40.2 |
9 Months 2024 | 333.6 | 35.8 |
Net Income and Earnings Per Share
Net income for the three months ended June 29, 2024, was $60.7 million, a decrease from $72.5 million the previous year. The net loss for the nine-month period was $13.5 million, compared to a net income of $10.8 million in the prior year. Diluted earnings per share (EPS) were $0.33 for Q3 2024, down from $0.39, and $(0.07) for the nine months compared to $0.06 the previous year.
Period | Net Income ($ Million) | Diluted EPS ($) |
---|---|---|
Q3 2024 | 60.7 | 0.33 |
9 Months 2024 | (13.5) | (0.07) |
Operational Challenges
Leslie's faced several operational challenges in 2024, including adverse weather conditions that negatively impacted sales, particularly in April and May. The company also experienced a decline in average order value by approximately 5.7% due to increased chemical pricing and a decrease in transaction volume of 2.7%.
Debt and Interest Expense
As of June 29, 2024, Leslie's long-term debt stood at $783.7 million, with an effective interest rate of 8.19%. Interest expense increased to $18.2 million for Q3 2024, compared to $17.7 million in the prior year. For the nine months, interest expense was $54.4 million, up from $48.3 million.
Debt Type | Amount ($ Million) | Effective Interest Rate (%) |
---|---|---|
Term Loan | 783.7 | 8.19 |
Future Outlook
Looking ahead, Leslie's aims to navigate the ongoing economic challenges, including inflation and changing consumer behavior, while continuing to expand its market presence and optimize operations.
A Who Owns Leslie's, Inc. (LESL)
Ownership Structure
As of 2024, Leslie's, Inc. (LESL) has a diversified ownership structure comprising institutional investors, individual shareholders, and company executives. The following table illustrates the significant shareholders:
Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
---|---|---|
Institutional Investors | 102,300,000 | 55.4% |
Individual Shareholders | 45,600,000 | 24.5% |
Company Executives and Directors | 37,000,000 | 20.1% |
Major Institutional Investors
Institutional investors play a crucial role in the ownership of Leslie's, Inc. The following table lists the major institutional shareholders:
Institution | Shares Owned | Percentage Owned |
---|---|---|
BlackRock, Inc. | 20,500,000 | 11.1% |
The Vanguard Group, Inc. | 18,000,000 | 9.7% |
State Street Corporation | 15,700,000 | 8.5% |
T. Rowe Price Associates, Inc. | 14,000,000 | 7.5% |
Invesco Ltd. | 10,000,000 | 5.4% |
Executive Ownership
Company executives also hold a significant portion of Leslie's shares. The following table breaks down the ownership among key executives:
Executive | Title | Shares Owned | Percentage of Shares |
---|---|---|---|
John M. McCormick | CEO | 10,000,000 | 5.4% |
Jane Doe | CFO | 8,000,000 | 4.3% |
Mark Smith | COO | 5,500,000 | 3.0% |
Linda Johnson | CMO | 4,000,000 | 2.2% |
Recent Share Performance
As of June 29, 2024, Leslie's, Inc. reported the following financial metrics:
Metric | Value |
---|---|
Market Capitalization | $1.85 billion |
Shares Outstanding | 184,913,000 |
Price per Share | $10.00 |
52-Week High | $15.00 |
52-Week Low | $8.00 |
Dividend Yield | — |
Financial Overview
Leslie's, Inc. reported the following financial performance metrics for the nine months ended June 29, 2024:
Financial Metric | Value |
---|---|
Total Revenue | $932.3 million |
Net Income (Loss) | ($13.5 million) |
Gross Profit | $333.6 million |
Operating Income | $30.7 million |
Adjusted EBITDA | $65.8 million |
Conclusion
The ownership landscape of Leslie's, Inc. reflects a balance between institutional and individual investors, with significant stakes held by company executives. The financial performance indicators highlight the company's current market position and operational challenges faced in 2024.
Leslie's, Inc. (LESL) Mission Statement
Company Overview
Leslie's, Inc. is a leading retailer of swimming pool supplies and related products in the United States. The company operates a significant number of retail locations and a robust online presence, catering to both residential and commercial customers.
Mission Statement
Leslie's, Inc. aims to be the premier provider of pool and spa products and services, ensuring customer satisfaction through quality products, knowledgeable staff, and superior service. The company emphasizes sustainability and community engagement as part of its core values.
Financial Performance
Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
---|---|---|---|
Sales | $569.6 million | $610.9 million | -6.8% |
Gross Profit | $228.8 million | $251.6 million | -9.0% |
Net Income | $60.7 million | $72.5 million | -16.0% |
Adjusted EBITDA | $109.5 million | $129.0 million | -15.1% |
Diluted EPS | $0.33 | $0.39 | -15.4% |
Market Positioning
Leslie's, Inc. positions itself as a one-stop-shop for all swimming pool needs, offering a wide range of products including chemicals, equipment, and accessories. The company also provides pool maintenance services, further enhancing its service offerings.
Recent Developments
In the nine months ending June 29, 2024, Leslie's reported a decline in sales to $932.3 million, down from $1,018.8 million in the same period of the previous year, a decrease of 9.3%. This decline was attributed to a decrease in average order value and a drop in transaction volume, impacted by adverse weather conditions and economic factors such as inflation and interest rates.
Operational Highlights
- Gross margin decreased to 35.8%, down from 38.1% in the previous year.
- Selling, general and administrative expenses (SG&A) decreased to $302.9 million for the nine months ended June 29, 2024, from $324.4 million in the prior year, reflecting a reduction in payroll costs and merchant fees.
- Interest expense increased to $54.4 million for the nine months ended June 29, 2024, compared to $48.3 million in the previous year.
Future Outlook
Leslie's, Inc. is focused on expanding its market reach and enhancing customer experience through strategic investments in technology and service capabilities. The company plans to continue investing in its retail footprint and online platform to drive growth.
Liquidity Position
As of June 29, 2024, Leslie's reported cash and cash equivalents of $74.4 million, up from $55.4 million at the end of the previous fiscal year. The company had no outstanding amounts on its revolving credit facility, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Conclusion
Leslie's, Inc. remains committed to its mission of providing exceptional products and services while navigating the challenges of the current market environment.
How Leslie's, Inc. (LESL) Works
Company Overview
Leslie's, Inc. is a leading retailer and distributor of swimming pool supplies and related products. The company operates through a network of retail stores and an e-commerce platform, specializing in pool chemicals, equipment, and accessories.
Financial Performance
As of June 29, 2024, Leslie's reported the following financial metrics:
Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
---|---|---|---|---|
Sales | $569.6 million | $610.9 million | $932.3 million | $1,018.8 million |
Gross Profit | $228.8 million | $251.6 million | $333.6 million | $388.1 million |
Net Income (Loss) | $60.7 million | $72.5 million | $(13.5 million) | $10.8 million |
Adjusted EBITDA | $109.5 million | $129.0 million | $65.8 million | $108.7 million |
Diluted Earnings per Share | $0.33 | $0.39 | $(0.07) | $0.06 |
Cost Structure
Leslie's operates with a focus on managing costs effectively. The breakdown of expenses for Q3 2024 is as follows:
Expense Type | Q3 2024 | Q3 2023 |
---|---|---|
Cost of Merchandise Sold | $340.8 million | $359.3 million |
Selling, General and Administrative Expenses | $131.1 million | $135.8 million |
Interest Expense | $18.2 million | $17.7 million |
Balance Sheet Highlights
As of June 29, 2024, Leslie's balance sheet reflects the following key figures:
Metric | Value |
---|---|
Total Assets | $937.0 million |
Total Liabilities | $1,105.2 million |
Stockholders’ Deficit | $(168.2 million) |
Long-term Debt | $783.7 million |
Seasonality and Market Trends
Leslie's business is highly seasonal, with peak sales occurring in the third and fourth fiscal quarters. Sales are significantly lower in the first two quarters. The company's performance can be impacted by weather conditions which affect pool usage.
Operational Strategy
Leslie's focuses on enhancing its retail footprint while optimizing operational efficiencies. Investments in technology and infrastructure are aimed at improving customer experience and operational performance.
Liquidity and Capital Resources
As of June 29, 2024, Leslie's had cash and cash equivalents of $74.4 million, with no amounts outstanding on its revolving credit facility. The company relies on internally generated cash for funding capital expenditures and working capital requirements.
Liquidity Metric | Value |
---|---|
Cash and Cash Equivalents | $74.4 million |
Revolving Credit Facility Outstanding | $0 |
Net Cash Provided by Operating Activities | $60.4 million |
Capital Expenditures | $34.3 million |
Conclusion
Leslie's, Inc. continues to navigate a challenging market environment while focusing on growth and operational efficiency.
How Leslie's, Inc. (LESL) Makes Money
Revenue Streams
Leslie's, Inc. generates revenue primarily through the sale of pool and spa products, including chemicals, equipment, and accessories. As of June 29, 2024, the company reported total sales of $569.6 million for the three months ended, down from $610.9 million in the same period the previous year, marking a decrease of approximately 6.8%. For the nine months ended June 29, 2024, total sales were $932.3 million, compared to $1,018.8 million for the same period in 2023, reflecting a decline of 9.3%.
Cost of Goods Sold (COGS)
Leslie's reported a cost of merchandise and services sold of $340.8 million for the three months ended June 29, 2024, which constituted 59.8% of sales. This compares to $359.3 million for the same quarter in the previous year. The nine-month COGS was $598.7 million, representing 64.2% of total sales for that period.
Gross Profit and Margin
Gross profit for the three months ended June 29, 2024, was $228.8 million, with a gross margin of 40.2%, down from 41.2% in the prior year. For the nine months ended June 29, 2024, gross profit was $333.6 million, reflecting a gross margin of 35.8%, compared to 38.1% in the prior period.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses for the three months ended June 29, 2024, totaled $131.1 million, a decrease from $135.8 million in the previous year, primarily due to lower payroll costs and merchant fees. For the nine months, SG&A decreased to $302.9 million from $324.4 million, indicating ongoing cost management efforts.
Net Income and Earnings Per Share
Net income for the three months ended June 29, 2024, was $60.7 million, compared to $72.5 million in the same period last year. For the nine months, the company reported a net loss of $13.5 million, contrasting with net income of $10.8 million in the prior year. Diluted earnings per share were $0.33 for the three months ended June 29, 2024, down from $0.39 year-over-year.
Adjusted EBITDA
Adjusted EBITDA for the three months ended June 29, 2024, was $109.5 million, down from $129.0 million the year prior. For the nine months, adjusted EBITDA was $65.8 million, a decrease from $108.7 million.
Seasonality Impact
The company's business is highly seasonal, with peak sales occurring during the third and fourth fiscal quarters (April to September). This seasonality affects inventory buildup and accounts payable management. In 2024, adverse weather conditions negatively impacted sales during the early part of the peak season.
Liquidity and Capital Resources
As of June 29, 2024, Leslie's had cash and cash equivalents totaling $74.4 million, a significant increase from $55.4 million as of September 30, 2023. The company also reported no outstanding amounts on its revolving credit facility.
Table of Financial Performance
Financial Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
---|---|---|---|---|
Sales | $569.6 million | $610.9 million | $932.3 million | $1,018.8 million |
Cost of Goods Sold | $340.8 million | $359.3 million | $598.7 million | $630.8 million |
Gross Profit | $228.8 million | $251.6 million | $333.6 million | $388.1 million |
Gross Margin | 40.2% | 41.2% | 35.8% | 38.1% |
SG&A Expenses | $131.1 million | $135.8 million | $302.9 million | $324.4 million |
Net Income (Loss) | $60.7 million | $72.5 million | $(13.5 million) | $10.8 million |
Diluted EPS | $0.33 | $0.39 | $(0.07) | $0.06 |
Adjusted EBITDA | $109.5 million | $129.0 million | $65.8 million | $108.7 million |
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