Investing.com – Leslies Inc (NASDAQ:), a leading direct-to-consumer brand in the U.S. pool and spa care industry, fell more than 16% in after-hours trading on Wednesday after announcing preliminary financial results for the third quarter of fiscal 2024. It company also revised its full-year outlook based on performance so far this year, as well as current market trends.
The company’s third quarter results were affected by adverse weather conditions in April and May, which delayed the start of the pool season. However, the company saw better performance in June thanks to the arrival of warmer weather.
Leslie’s also reported continued weakness in discretionary product categories due to persistent inflation and high interest rates.
Mike Egeck, Chief Executive Officer, said: “The cold and wet spring weather we experienced during the second fiscal quarter lasted through May, reducing the number of pool days in non-seasonal markets and delaying the start of pool season in seasonal markets postponed. We also continued to see weakness in the big ticket options categories as persistent inflation and high interest rates put pressure on pool owners’ pockets.”
Based on these preliminary results and fourth-quarter expectations, Leslie’s has revised its full-year 2024 guidance, now expecting revenue to range between $1,321 and $1,347 million, while forecasting gross profit between $483 and $499 million.
The company expects a net income loss of $5 million and a profit of $6 million.
