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LESL Nasdaq· Leslie's Inc.
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LESL Nasdaq· Leslie's Inc.
Earnings report Q4 2023

LESL Reports Decline in Revenue for the Latest Quarter

Segments of revenue

LESL's sales for the quarter ending December 30, 2023, amounted to $173.96 million, compared to $195.10 million in the same quarter of the previous year. This represents a decrease of approximately 11% in revenue.

Strengths

Despite the decline in revenue, LESL's gross profit for the quarter was $50.41 million, indicating a gross profit margin of approximately 29%. This suggests that the company was able to maintain a reasonable level of profitability despite the decrease in sales. Additionally, the company's management commented that the decline in revenue was primarily driven by lower sales in certain product categories, which they believe can be attributed to temporary market trends rather than long-term challenges.

Challenges

LESL faced challenges in the form of higher selling, general, and administrative expenses, which amounted to $86.88 million for the quarter. This represents an increase compared to the previous year's quarter, where these expenses were $92.28 million. The higher expenses contributed to the operating loss of $36.47 million for the quarter, compared to an operating loss of $26.98 million in the same quarter of the previous year.

Noteworthy

It is worth noting that LESL reported a net loss of $39.55 million for the quarter, compared to a net loss of $30.26 million in the previous year's quarter. The increase in the net loss can be attributed to higher interest expenses, which amounted to $17.07 million for the quarter, compared to $13.36 million in the same quarter of the previous year.

Summary

LESL experienced a decline in revenue for the latest quarter, primarily driven by lower sales in certain product categories. However, the company was able to maintain a reasonable level of profitability with a gross profit margin of approximately 29%. The increase in selling, general, and administrative expenses contributed to the operating loss for the quarter. LESL's management believes that the decline in revenue is temporary and not indicative of long-term challenges. The higher net loss can be attributed to increased interest expenses. Overall, LESL's financial performance in the latest quarter reflects both strengths and challenges for the company.

Source documents

Form 10-Q  filed on Feb 02, 2024
14 pages scanned

Reference data

Company financials Q4 revenue 174M
Analyst estimates Q4 EPS missed by -219.76%
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