Phoenix — It’s 11:06 a.m. MST, May 14, 2026.
Shares of Leslie’s Inc. were up sharply in midday action Thursday, soaring as much as 160% to $3.72 after the pool-supplies retailer posted stronger sales for the second quarter and reported improved store traffic. The company kept its 2026 outlook steady, a reassuring sign for investors watching for progress in its turnaround effort. Earlier in the session, the stock reached an intraday peak of $4.71.
Leslie’s is pushing to turn things around after a stretch marked by sluggish demand, shuttered stores, and a slumping stock price—right as the crucial summer pool season arrives. Most of the company’s sales and earnings typically come in the fiscal year’s back half, when pool owners step up spending on chemicals, repairs, and maintenance.
It’s the first big look at how the lower-price strategy rolled out in March is playing out. Leslie’s reported a 4.3% jump in second-quarter sales to $184.7 million, with comparable sales climbing 6.6%. Shoppers are showing up—customer count was up 8%, according to the company.
Chief Executive Jason McDonell pointed to “strong transaction growth and customer engagement” off the back of the company’s early “Price Drop” initiative, saying price moves were covered by tighter spending and cost controls. “We’re fundamentally reimagining how Leslie’s serves customers while creating a more efficient business model,” McDonell said. GlobeNewswire
The rebound left plenty to be desired. Leslie’s net loss landed at $52.5 million—wider than last year’s $51.3 million shortfall. Adjusted EBITDA, the company’s preferred metric, showed some improvement: a $26.8 million loss, less severe than the $36.1 million loss reported a year ago.
Gross margin climbed to 28.9%, up from 24.8%. The lift came on the back of stronger sales volume, a drop in occupancy and distribution costs, and tweaks to inventory reserves. In its latest quarterly filing, Leslie’s pointed to robust retail performance and a favorable calendar shift as key sales drivers, though store closures chipped away at the top line.
During the earnings call, McDonell pointed to a jump of over 25% in reactivated customers—people who skipped Leslie’s last year but made purchases between 2021 and 2024. He also noted that price reductions triggered a double-digit surge in store transactions, while conversion rate improved by more than 350 basis points. (A basis point equals one-hundredth of a percentage point.
Leslie’s has wrapped up its scheduled store closures for fiscal 2026 and isn’t planning any further shutdowns this year, CFO Jeffrey Justin White said. The company is sticking with its projection: the store program will shave about $25 million to $35 million off annual sales, but should boost net EBITDA by $4 million to $10 million each year.
Leslie’s stuck to its full-year fiscal 2026 outlook, projecting sales between $1.10 billion and $1.25 billion, with adjusted EBITDA ranging from $55 million to $75 million. Capital expenditures are still pegged at $20 million to $25 million. As of quarter’s end, the company reported $16.9 million in cash, inventory totaling $262.4 million, and $97.1 million in total liquidity, which includes both cash and available credit.
The competitive landscape has eased a bit versus last year, but challenges persist. Pool Corp.—a heavyweight in pool supplies—said last month that maintenance demand is still solid, though buyers of more discretionary products are returning slowly. Hayward Holdings, which makes pool equipment, logged 12% sales growth for the first quarter and lifted its forecast, crediting stronger pricing, currency tailwinds, and higher volume.
On the call, analysts zeroed in on whether Leslie’s margin lift has legs—and if price cuts will stretch past just the core chemicals. Jefferies’ Jonathan Matuszewski pointed to a “comp inflection” in the quarter. From Mizuho, David Bellinger pressed on whether management would ramp up its price-investment strategy, citing the initial customer response. CEO McDonell pushed back, saying it’s tough to discount equipment due to vendor-enforced minimum advertised pricing on much of that inventory. The Motley Fool
The rally has outpaced the underlying business. Leslie’s still sits on substantial debt, continues to post losses, and flagged in its filing that its shares could face Nasdaq delisting if it doesn’t meet public-float market-value requirements by Aug. 10, 2026. Weather, tariffs, price-sensitive shoppers, elevated interest rates, and whether management can pull off its pricing strategy—all of these, the company said, could swing the outcome.
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