Latest news with #LesliesInc
Yahoo
3 days ago
- Business
- Yahoo
Here's Why Leslie's (LESL) Continued to Weigh on Ariel Fund's Performance
Ariel Investments, an investment management company, released its 'Ariel Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was a volatile period. Stocks fell sharply in early April following the 'Liberation Day' tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index's +7.29% return and exceeding the Russell 2000 Value Index's +4.97% gain. For more information on the fund's top picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Ariel Fund highlighted stocks such as Leslie's, Inc. (NASDAQ:LESL). Leslie's, Inc. (NASDAQ:LESL) is a direct-to-consumer pool and spa care brand. The one-month return of Leslie's, Inc. (NASDAQ:LESL) was -14.61%, and its shares lost 86.52% of their value over the last 52 weeks. On July 18, 2025, Leslie's, Inc. (NASDAQ:LESL) stock closed at $0.3963 per share, with a market capitalization of $73.483 million. Ariel Fund stated the following regarding Leslie's, Inc. (NASDAQ:LESL) in its second quarter 2025 investor letter: "Lastly, U.S. direct-to-consumer pool and spa care services company, Leslie's, Inc. (NASDAQ:LESL) continued to weigh on performance over the period. The company has had a slow start to the year as adverse weather conditions resulted in softer top-line results. As the company heads into the summer pool season, the new executive leadership team is re evaluating pricing, optimizing inventory and implementing customer loyalty programs. Although investors remain on the sidelines, these initiatives should yield efficiency improvements. While we have been deeply disappointed with this investment, we are optimistic the new efforts will positively impact the business and position the company for future success. In our view, Leslie's current valuation reflects extreme pessimism, which is unwarranted given the company's loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience." A close-up of a pool with freshly applied chemicals, showing the efficacy of the company's products. Leslie's, Inc. (NASDAQ:LESL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Leslie's, Inc. (NASDAQ:LESL) at the end of the first quarter, compared to 29 in the previous quarter. In the second quarter of 2025, Leslie's, Inc. (NASDAQ:LESL) reported sales of $177.1 million compared to $188.7 million in the second quarter of the previous year, primarily due to weaker foot traffic. While we acknowledge the potential of Leslie's, Inc. (NASDAQ:LESL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Leslie's, Inc. (NASDAQ:LESL) and shared Ariel Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
15-07-2025
- Business
- Globe and Mail
Leslie's Announces Seasoned Retail Executive Amy College as Chief Merchandising and Supply Chain Officer
PHOENIX, July 15, 2025 (GLOBE NEWSWIRE) -- Leslie's, Inc. (NASDAQ: LESL), the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry serving residential customers and pool professionals nationwide, today announced appointment of Amy College as the company's new Chief Merchandising and Supply Chain Officer effective July 20, 2025. In addition to merchandising, inventory, supply chain, logistics and manufacturing, Ms. College will be responsible for the company's digital marketplace business. In conjunction with Ms. College's appointment, Moyo LaBode, the company's outgoing Chief Merchandising and Supply Chain Officer has left Leslie's, effective July 15, 2025. Ms. College has more than 25 years of retail operations leadership experience including merchandising, supply chain and store operations. Ms. College spent nearly five years at Petco (NASDAQ: WOOF) and most recently served as Chief Merchandising and Supply Chain Officer where she was responsible for category merchandising, enterprise demand planning, visual merchandising, owned brand product development and sourcing as well as distribution operations. Previously, Ms. College served as Senior Vice President, Operations, Strategy and Territory General Manager for Petco stores. Prior to joining Petco, Ms. College spent more than 20 years at Best Buy. During her tenure, Ms. College served in merchandising and category management leadership roles, including Chief Category Officer for the company's home theater, smart home, digital imaging and appliances. She holds a bachelor's degree in business from the University of Minnesota's Carlson School of Management. 'We are thrilled to welcome Amy to our leadership team at this pivotal time in Leslie's transformation,' said Jason McDonell, Leslie's chief executive officer. 'With significant retail, merchandising and general management experience, she brings a unique blend of strategic vision and operational expertise that I am confident will help guide us through this next chapter and deliver against our transformation initiatives. I am confident her values-driven leadership style and deep commitment to customer experience will be instrumental in accelerating our progress, strengthening cross-functional collaboration and delivering results that position us for long-term success.' About Leslie's Founded in 1963, Leslie's is the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry serving residential customers and pool professionals nationwide. The company serves the aftermarket needs of residential and professional consumers with an extensive and largely exclusive assortment of essential pool and spa care products. The company operates an integrated ecosystem of over 1,000 physical locations and a robust digital platform, enabling consumers to engage with Leslie's whenever, wherever, and however they prefer to shop. Its dedicated team of associates, pool and spa care experts, and experienced service technicians are passionate about empowering Leslie's consumers with the knowledge, products, and solutions necessary to confidently maintain and enjoy their pools and spas. Contact Elisabeth Eisleben Senior Vice President, Investor & Public Relations Leslie's, Inc. investorrelations@ Forward-Looking Statements This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations or financial condition, business strategy, value proposition, legal proceedings, competitive advantages, market size, growth opportunities, industry expectations, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as 'anticipate,' 'believe,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' or 'would,' or the negative of these words or other similar terms or expressions. Our actual results or outcomes could differ materially from those indicated in these forward-looking statements. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in Part I, Item 1A, 'Risk Factors' in our Annual Report on Form 10-K for the year ended September 28, 2024 and in our other filings with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time-to-time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements. In addition, statements that 'we believe' and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release, and while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
Yahoo
04-07-2025
- Business
- Yahoo
Leslie's, Inc.'s (NASDAQ:LESL) Intrinsic Value Is Potentially 66% Above Its Share Price
Using the 2 Stage Free Cash Flow to Equity, Leslie's fair value estimate is US$0.69 Leslie's is estimated to be 40% undervalued based on current share price of US$0.42 The US$1.37 analyst price target for LESL is 98% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Leslie's, Inc. (NASDAQ:LESL) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$14.0m US$19.0m US$15.6m US$13.8m US$12.8m US$12.2m US$12.0m US$11.9m US$12.0m US$12.1m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -17.88% Est @ -11.64% Est @ -7.26% Est @ -4.20% Est @ -2.06% Est @ -0.56% Est @ 0.49% Est @ 1.23% Present Value ($, Millions) Discounted @ 12% US$12.5 US$15.3 US$11.2 US$8.9 US$7.4 US$6.3 US$5.6 US$5.0 US$4.5 US$4.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$81m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 12%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$12m× (1 + 2.9%) ÷ (12%– 2.9%) = US$144m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$144m÷ ( 1 + 12%)10= US$48m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$129m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$0.4, the company appears quite undervalued at a 40% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Leslie's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12%, which is based on a levered beta of 2.000. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Leslie's Strength No major strengths identified for LESL. Weakness Interest payments on debt are not well covered. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Significant insider buying over the past 3 months. Threat Debt is not well covered by operating cash flow. Total liabilities exceed total assets, which raises the risk of financial distress. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Leslie's, there are three fundamental factors you should look at: Risks: For example, we've discovered 4 warning signs for Leslie's (2 are a bit unpleasant!) that you should be aware of before investing here. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for LESL's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
10-05-2025
- Business
- Yahoo
Leslie's price target lowered to $1.25 from $3 at Telsey Advisory
Telsey Advisory lowered the firm's price target on Leslie's (LESL) to $1.25 from $3 and keeps a Market Perform rating on the shares. While the firm likes to hear of the strategic efforts and messaging delivered by the company's leadership team, the firm believes visibility into trends going into this year are clouded, the analyst tells investors. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on LESL: Disclaimer & DisclosureReport an Issue Leslie's price target lowered to $1 from $4 at Loop Capital Leslie's Hold Rating: Balancing Strategic Initiatives with Immediate Challenges Leslie's, Inc. Reports Q2 2025 Results Amid Challenges Leslie's reports Q2 adjusted EPS (25c), consensus (24c) Leslie's backs FY25 adjusted EPS view (1c)-7c, consensus 3c
Yahoo
09-05-2025
- Business
- Yahoo
Leslies Inc (LESL) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Sales: $177.1 million, down from $188.7 million in the prior year. Gross Profit: $43.9 million, compared to $54.3 million in the prior year. Gross Margin: 24.8%, down from 28.8% in the prior year. SG&A Expenses: $92.3 million, up from $84.9 million in the prior year. Adjusted EBITDA: Loss of $36 million. Inventory Reduction: 12% decrease year-over-year, ending at $335.1 million. Pro Sales Improvement: 700 basis point improvement from a 9% decline in the prior year. Conversion Rate Improvement: Increased by 174 basis points year-over-year. Inventory Turns: Improved by 8% year-over-year. Debt Reduction: $27 million reduction in secured term loan, now at $756.7 million. Revolving Credit Facility: $101.5 million outstanding, expected to be repaid in full during the third quarter. Capital Expenditure Reduction: Reduced by $5 million, now expected to be $30 to $35 million for the year. Warning! GuruFocus has detected 8 Warning Signs with LESL. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Leslies Inc (NASDAQ:LESL) achieved a 174 basis point improvement in conversion rates, attributed to enhanced in-stock levels and team expertise. The company successfully launched 26 Local Fulfillment Centers (LFCs) on time and under budget, improving inventory management and customer service. Leslies Inc (NASDAQ:LESL) introduced a new loyalty program with tiered benefits, aiming to increase customer engagement and retention. The partnership with Uber for same-day delivery is expected to enhance customer convenience and optimize asset utilization. Pro sales showed a 700 basis point improvement year over year, indicating strong momentum in the professional segment. Sales declined by 6% year over year, primarily due to weaker foot traffic and colder temperatures affecting demand. Gross margin decreased from 28.8% to 24.8%, impacted by increased distribution center and occupancy costs, as well as mix and volume challenges. SG&A expenses rose to 52.1% of net sales, driven by higher labor costs and executive transition expenses. The company reported an adjusted EBITDA loss of $36 million for the quarter, reflecting ongoing financial challenges. Leslies Inc (NASDAQ:LESL) faces tariff exposure estimated at $10 to $12 million annually, which could impact product costs. Q: Can you provide context on Leslie's competitive landscape and market share performance this quarter? A: Jason McDonell, CEO, explained that the quarter's top-line performance was impacted by weather, particularly in January and February. While specific market share numbers are not available due to varied competition across product categories, Leslie's is making significant progress in the pro segment, suggesting a gaining share position. The company is focusing on engaging both pro and DIY customers through initiatives like improved in-stock rates, enhanced mobile app features, and new marketing programs. Q: Could you expand on the strategic pricing increases mentioned, and how they relate to tariffs? A: Tony Iskander, Interim CFO, stated that pricing adjustments will only be made to offset tariff impacts, which represent less than 1% of total sales. Therefore, significant pricing changes are not anticipated. Q: Aside from weather, are there other factors contributing to the comp weakness in Q2? A: Jason McDonell noted that weather was a significant factor, but the company is seeing positive trends in conversion rates, which improved by 174 basis points. This improvement is attributed to better in-stock rates and the expertise of team members, particularly after water tests. Q: How is Leslie's planning for inventory purchases in the second half of 2025, given past slow starts to spring? A: Jason McDonell emphasized a precision inventory mindset, focusing on optimizing inventory levels to improve working capital and reduce debt. Tony Iskander added that inventory optimization will help mitigate tariff impacts by utilizing existing stock. Q: Can you discuss the cost optimization pillar and its impact on the expense ratio? A: Tony Iskander highlighted that the cost optimization pillar focuses on indirect procurement costs, with expected savings of $5 to $10 million. The company is also evaluating asset utilization for further cost efficiencies. Jason McDonell added that local fulfillment centers (LFCs) are helping drive cost efficiency and improve inventory management. Q: How does the partnership with Uber for same-day delivery fit into Leslie's strategy? A: Jason McDonell explained that the partnership with Uber aligns with the company's focus on customer centricity and convenience. It allows Leslie's to fulfill customer needs quickly, reducing delivery times from days to minutes or hours, while also providing cost savings by fulfilling orders locally. Q: What gives Leslie's confidence in reiterating its full-year sales outlook despite Q2 challenges? A: Jason McDonell noted that a significant portion of sales is still expected in the second half of the year. The company is optimistic due to improvements in conversion rates, the launch of new initiatives like the DIY loyalty program, and enhanced customer engagement strategies. Q: What factors contribute to the expected gross margin improvement in the second half of the year? A: Tony Iskander mentioned that the Q4 tailwind from rebate timing will benefit gross margins. Additionally, new initiatives focused on customer centricity and convenience are expected to positively impact margins, despite earlier challenges from mix and lower volume. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
