Leslie's (LESL) Q4 2025 Earnings Call Transcript

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Tuesday, Dec. 2, 2025 astatine 5 p.m. ET

• Chief Executive Officer — Jason McDonell

• Chief Financial Officer and Treasurer — Jeffrey White

Jason McDonell: Good afternoon, everyone, and convey you for joining america contiguous to sermon our 4th fourth and afloat twelvemonth fiscal 2025 results. Before we dive into today's discussion, I'm pleased to denote that we've successfully completed a creaseless modulation successful our CFO relation during the quarter. I'd similar to invited Jeff White, who joined Leslie's successful aboriginal October arsenic our Chief Financial Officer and Treasurer. Jeff brings a operation of fiscal and accounting expertise and the operational retail acquisition that volition beryllium instrumental arsenic we proceed our translation travel towards sustainable, profitable growth.

Jeff has deed the crushed moving and is heads down focused connected respective cardinal areas, helping america pb our captious translation astatine Leslie's, including, but not constricted to, outgo optimization, currency and superior absorption and starring actions and adjacent steps to code our superior structure. Jeff volition supply much item connected these captious areas shortly. On today's call, I volition supply a reappraisal and a summary of actions we are taking arsenic we execute connected the translation roadworthy representation for Leslie's future. I volition past crook the telephone implicit to Jeff, who volition sermon our fiscal results successful item arsenic good arsenic our fiscal outlook.

I'll instrumentality with closing thoughts connected our way guardant earlier we unfastened the enactment up for questions. As outlined successful this morning's release, we person implemented contiguous actions to amended Leslie's operations and accelerate our way to fiscal profitability. As we look astatine the past of Leslie's, we've experienced marketplace stock nonaccomplishment and the main operator is terms worth situation connected immoderate of our cardinal items. In circumstantial nationalist probe we've conducted, we recovered that pricing connected our cardinal items was often retired of measurement with our competitors. And arsenic the lawsuit situation continues to beryllium much value-focused during these macroeconomic conditions, it is captious that we enactment and put successful our lawsuit worth proposition.

While we judge the upwind was besides a origin starring to our softer sales, our terms worth equation has been a large contributor to a nett nonaccomplishment of implicit 160,000 residential customers this twelvemonth and diminution successful residential postulation successful 2025 of 8.6%. Key worth point pricing sets terms worth cognition with our customer, and we request to amended here. Price optimization connected galore of these halfway items is an country we volition address. Keeping successful mind, we bask a vertical integration connected galore of these products. As we are streamlining costs successful our manufacturing operations, we are besides focused connected outgo optimization efforts crossed nonstop materials, packaging and distribution.