The case for & against
Bull & Bear analysis
Leslie's, Inc. (NASDAQ: LESL) is the largest retailer of swimming pool supplies in the United States, focusing on a vast array of products and services for both residential and professional customers. The company is a dominant player in the pool care market, navigating a transformational phase characterized by the closure of underperforming locations and a renewed emphasis on customer engagement through competitive pricing and targeted marketing initiatives. With a significant operational presence, Leslie's aims to enhance its customer experience while maximizing efficiency amid intensifying competition and market pressures.
Bull says
- ↑Q2 2026 revenue grew 4.3% YoY to $184.7 M, demonstrating resilience.
- ↑Adjusted EBITDA surged 26% YoY, driven by price cuts and cost efficiencies.
- ↑Customer base increased 8% and comparable sales rose 6.6% through targeted marketing.
- ↑Professional segment sales climbed ~5%, boosting higher-margin revenue.
- ↑Capex reduced to $20–$25 M for 2026 to preserve liquidity.
- ↑Strong momentum and healthy liquidity scores support the turnaround.
Bear says
- ↓Q2 2026 net loss was $52.5 M; adjusted loss widened from $48.3 M last year.
- ↓High leverage amplifies exposure to rate hikes and economic downturns.
- ↓Negative earnings yield and profitability factors signal valuation and margin pressure.
- ↓Closure of 80 stores could cut annual revenue by up to $35 M.
- ↓Sales heavily depend on seasonality and weather, risking volatility.
- ↓Customer churn and downward earnings revisions temper optimism.
Investment themes with LESL
Stocks with high short interest ratios
Stocks with highest short interest
Earnings Call · Q2 2026 · Mgmt. Guidance
Transcript signals
Bull points
- Compared to last year, in the second quarter, we delivered overall revenue growth of 4.3%, a comparable sales increase of 6.6%, improved year-over-year adjusted EBITDA by 26%, and registered total customer count growth of 8%.
- we're off to a great start with broad-based customer growth in the second quarter. What's particularly encouraging is the mid-single-digit growth we're seeing across both new and retained customers, and greater than 25% growth in reactivated customers.
- Our retail stores experienced double-digit increase in transactions and more than a 350 basis point improvement in our overall conversion rate.
Bear points
- we remain confident in an annualized net EBITDA benefit of $4 million to $10 million, despite an annual sales impact of approximately $25 million to $35 million from the 80 stores that we have closed in fiscal 2026.
- We also saw expected softness in safety and solar as we anniversaried a clearance event in the second quarter of last year.
- Net loss for the second quarter was $52.5 million compared with a net loss of $51.3 million in the second quarter of the prior year.