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Leslie's Inc. (LESL-4.05%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing reports sales of $175.2 million for the quarter, a slight increase from $174.0 million in the same quarter the previous year. This growth was primarily driven by a 2.0% increase in transaction volume, partially offset by a 1.3% reduction in average order value.
Gross profit for the quarter was $47.7 million, down from $50.4 million in the prior year period. The gross margin decreased to 27.2% from 29.0%, attributed to increased inventory adjustments and higher occupancy and distribution center costs.
Selling, general, and administrative expenses rose to $87.4 million from $86.9 million, mainly due to increased consulting and professional fees.
The company reported an operating loss of $39.7 million, compared to a $36.5 million loss in the previous year. Interest expense decreased to $15.8 million from $17.1 million due to lower interest rates on the Term Loan.
Net loss for the quarter was $44.6 million, compared to $39.6 million in the prior year. The effective income tax rate was 19.7%, influenced by state taxes and changes in valuation allowance related to interest expense limitation.
Cash used in operating activities increased to $105.1 million from $71.9 million, primarily due to changes in working capital. Cash used in investing activities was $4.6 million, down from $10.7 million due to decreased property and equipment purchases.
Leslie's Inc. reported adjusted EBITDA of $(29.3) million, a decrease from $(24.4) million in the previous year, primarily due to lower gross profit.
The company continues to address material weaknesses in internal control over financial reporting and anticipates remediation efforts to be completed during fiscal year 2025.
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. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.