Leslie's (LESL) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 8, 2026 astatine 9:55 AM CDT 34 min read

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Wednesday, Aug. 6, 2025 astatine 5 p.m. ET

• Interim Chief Executive Officer and President — Jason B. McDonell

• Chief Financial Officer — Anthony A. Iskander

• Senior Vice President, Investor Relations and Corporate Communications — Elisabeth L. Eisleben

Jason B. McDonell: Thanks, Elisabeth. I privation to statesman by thanking our full squad for their hard enactment and resilience during what proved to beryllium a challenging 3rd quarter. As we look persistent macro pressures, antithetic upwind patterns crossed cardinal markets and an progressively competitory landscape, the squad responded with urgency, absorption and a relentless committedness to alteration Leslie's. Before we sermon our 3rd 4th show and actions we're taking to accelerate our transformation, I privation to invited Amy College, who joined Leslie's past period arsenic our Chief Merchandising and Supply Chain Officer.

In summation to her important retail, merchandising and wide absorption experience, Amy brings a unsocial blend of strategical imaginativeness and operational expertise that I americium assured volition assistance america accelerate our advancement and presumption Leslie's for semipermanent profitable growth. As you saw from our preliminary results from the fiscal 3rd quarter, we faced important challenges successful some our apical and bottommost enactment that were beneath our expectations. The overmuch cooler temperatures and important precipitation crossed our apical geographies disrupted the highest excavation season, resulting successful quarterly income down 12% compared to the anterior twelvemonth quarter. In addition, aboriginal successful the quarter, we saw heightened competitory unit successful definite categories. I volition sermon these successful much item shortly.

As customers delayed excavation openings, we saw a meaningful simplification successful our residential postulation successful stores of astir 11% successful the quarter. Moving to our 3rd 4th results. As mentioned successful anterior quarters, we are aiming to execute portion we transform. During this quarter, our squad acted with urgency to offset headwinds we faced arsenic a effect of the softer apical enactment and mitigate the bottommost enactment impacts wherever possible, including making pugnacious but indispensable decisions astir outgo power and strategically deferring prime investments to support our fiscal performance. As I mentioned concisely astatine the commencement of this call, we had important headwinds to retail postulation and residential income successful the quarter.

With that said, done the expertise of our store squad and betterment successful reliability, we proceed to present maturation connected conversion rate, which improved astir 70 ground points versus the anterior twelvemonth period. In addition, utilizing our AccuBlue h2o trial technology, aft a h2o trial is performed successful store, conversion complaint accrued by much than 550 ground points versus the anterior twelvemonth period. While income were challenged done targeted efforts connected maturation and expansion, we are improving our lawsuit proposition with the Pro segment. I americium assured that our team's disciplined attack to enhancing relationships with existing Pro customers portion besides expanding to caller customers tin assistance america instrumentality to maturation successful this business.