Leslies Inc (LESL) Q3 2024 Earnings Report

Leslie's reported fiscal Q3 2024 revenue of $569.6 million, down 7% year over year, with gross margin of 40.0% (≈40.17% per reported figures) and Adjusted EBITDA of $109 million. Net income was $60.6 million, and diluted EPS stood at $0.33. Despite a soft top line, the company generated robust operating cash flow ($175.5 million) and free cash flow ($165.2 million), supported by disciplined working capital management and inventory reductions. The results reflect weather- and demand-normalization headwinds from the post-pandemic cycle, with discretionary categories (notably equipment) still under macro pressure, while chemical volumes improved and the Pool Perks loyalty program and PRO channel provided earnings resilience. Management indicated long‑term margin targets remain intact (gross margin ~40%, SG&A ~28%, operating margin ~12%, adjusted EBITDA margin in the mid‑teens) and emphasized balance‑sheet strength via debt reduction and selective store growth. The quarterly call underscored meaningful sequential improvement in June, ongoing progress on cost controls, and AccuBlue smart water testing as a growth milestone, though near‑term visibility remains tempered by weather variability and consumer caution.