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Leslie’s Cuts Fiscal 2023 Outlook Following Disruptions

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Leslie’s, the direct-to-consumer pool and spa care services company, has revised its fiscal 2023 outlook due to ongoing disruptions experienced in the third quarter.

Declining Sales and Adjusted Earnings

Preliminary third-quarter sales for Leslie’s are expected to decline by 12%, amounting to $611 million. The company forecasts a net income range of $70 million to $73 million, with adjusted per-share earnings estimated at 39 cents to 41 cents.

In contrast, analysts polled by FactSet had anticipated sales of $701.3 million for the same period, representing a 4.1% increase from the prior-year period. Net income was initially predicted to be $120.3 million, with adjusted per-share earnings projected around 69 cents.

Revised Fiscal Year Expectations

Leslie’s now anticipates fiscal year sales of $1.43 billion to $1.45 billion, along with a net income range of $33 million to $40 million. Adjusted per-share earnings are expected to be in the range of 28 cents to 32 cents. The company attributes these revisions to the expected continuation of trends identified in the third quarter.

In May, Leslie’s had previously projected higher sales figures of $1.56 billion to $1.64 billion, a net income range of $131 million to $146 million, and adjusted per-share earnings of 78 cents to 86 cents.

Chief Executive Addresses Third-Quarter Performance

Leslie’s Chief Executive, Mike Egeck, acknowledged that the third-quarter results were below expectations due to a decline in traffic for both residential and professional businesses.

Egeck explained, “While abnormal weather continued to pressure traffic levels, customer surveys conducted towards the end of the quarter also indicated increased price sensitivity and that consumers entered the pool season with a greater than normal amount of chemicals leftover from last year.”

Leslie’s full third-quarter results will be released on August 2, following the market close.

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