Leslie's's Q2 Earnings Call: Our Top 5 Analyst Questions

Leslie’s faced a difficult Q2, with the market reacting negatively to results as management attributed the performance to persistent cool weather, lower residential store traffic, and rising competitive pressures. CEO Jason McDonell described the quarter as challenging, highlighting that “significant precipitation and cooler temperatures across key geographies disrupted the peak pool season,” leading to notable declines in sales, especially in chemicals. The company also saw heightened price competition and shifts in customer behavior, prompting a cautious, self-critical tone as management acknowledged underperformance and the need for urgent changes.

Is now the time to buy LESL? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Leslie's’s Q2 Earnings Call

• Katharine Amanda McShane (Goldman Sachs) asked about the company’s response to aggressive competitor promotions and quarter-to-date traffic trends. CEO Jason McDonell said Leslie’s made mid-single-digit price investments and is seeing some traffic improvement, but it remains below expectations.
• Jonathan Richard Matuszewski (Jefferies) questioned gross margin recovery and competitive pressures in equipment. Interim CFO Anthony Iskander said fixed cost deleverage is a headwind but asset and cost optimization initiatives are underway to improve the trajectory.
• Steven Paul Forbes (Guggenheim) pressed on whether execution or price value is the main gap to peers. McDonell responded that while execution in stores is strong, the value proposition and strategic pricing need more work to increase traffic.
• Shaun Francis Calnan (Bank of America) asked if there is a shift away from DIY to Pro customers. McDonell stated there is no meaningful channel migration, but the focus is on growing the Pro segment and recapturing residential share through loyalty and targeted offers.
• Ryan James Merkel (William Blair) inquired about industry sales outlook and the scale of cost-cutting. Iskander indicated the industry is likely down low to mid-single digits and Leslie’s is targeting further cost reductions, with no store closures planned this year.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will be monitoring (1) whether localized pricing and marketing programs drive sustainable traffic growth, (2) the pace and impact of cost and asset optimization—including warehouse closures and inventory reduction, and (3) the effectiveness of digital and omnichannel initiatives like same-day delivery. Progress on reducing debt and adapting to competitive pressures will also be important markers of management’s execution.

Leslie's currently trades at $0.28, down from $0.37 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.