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Leslie's Inc. (LESL-3.36%) has submitted its 10-K filing for the fiscal year ended September 28, 2024.
The filing reports a decrease in sales to $1,330,121,000 from $1,451,209,000 in the previous year, attributed to declines in traffic and average order value. Comparable sales decreased by 8.8%.
Gross profit decreased to $476,790,000 from $548,223,000, with gross margin declining to 35.8% from 37.8%. The decrease in gross margin was due to negative impacts from product rate and occupancy costs.
Selling, general, and administrative expenses decreased to $419,673,000 from $446,044,000, primarily due to lower merchant fees, payroll costs, and marketing expenses.
Interest expense increased to $70,395,000 from $65,438,000, primarily due to higher interest rates on the Term Loan and Revolving Credit Facility.
The company reported a net loss of $23,379,000, compared to a net income of $27,242,000 in the previous year. Diluted earnings per share decreased to $(0.13) from $0.15.
Adjusted EBITDA decreased to $108,744,000 from $168,149,000, driven by lower sales volume and decreases in product rate and occupancy deleverage.
Leslie's Inc. did not make any acquisitions during fiscal 2024. The company continues to focus on its growth strategies, including expanding its consumer base and increasing its share in the professional market.
Leslie's has identified material weaknesses in its internal control over financial reporting related to the vendor rebate process and inventory process. The company is implementing remediation efforts to address these issues.
The company operates over 1,000 locations in 39 states and plans to continue expanding its physical and digital presence to capture a larger market share in the pool and spa care industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Leslie's Inc. annual 10-K report dated November 27, 2024. To report an error, please email earnings@qz.com.