Leslie's Navigates Challenging Season, Eyes Long-Term Transformation

NEW YORK, NY – November 18, 2025

Leslie’s, Inc. (NASDAQ: LESL), the nation’s largest direct-to-customer brand in the pool and spa care industry, is navigating a challenging economic climate marked by unpredictable weather patterns and shifting consumer behaviors. While recent quarterly results revealed a decline in sales, the company is actively pursuing a multi-faceted transformation strategy aimed at bolstering operational efficiency, enhancing the customer experience, and positioning itself for long-term growth.

A Wet Blanket on Summer Sales

Leslie's recently reported a 12.2% decrease in sales for the third quarter of fiscal year 2025, attributing the downturn to unusually wet and cool weather across key geographic markets. The adverse conditions disrupted the peak pool season, impacting both discretionary spending and overall traffic. “The weather really played a significant role this quarter,” noted one industry analyst. “Pool season is heavily reliant on warm, sunny weather, and when that’s absent, sales inevitably suffer.”

The impact wasn’t isolated to Leslie’s. While competitors like Pool Corporation and Hayward Holdings demonstrated varying degrees of resilience, the industry as a whole felt the pinch of unfavorable conditions. However, unlike Leslie's, Pool Corporation and Hayward Holdings both saw revenue and income increases. Leslie’s net income plummeted by 64.3% compared to the same period last year, raising concerns among investors.

Despite the challenging quarter, Leslie’s maintains a dominant position in the fragmented pool and spa market. The company’s expansive network of over 1,000 physical locations, coupled with its robust digital platform, gives it a significant competitive advantage. Approximately 80% of U.S. pools are located within a 20-mile radius of a Leslie’s store, allowing for convenient access to products and services. The company's high percentage of essential, non-discretionary items provides a degree of stability even during economic downturns.

Strategic Shifts Underway

Recognizing the need for adaptation, Leslie’s is actively implementing a series of strategic initiatives designed to enhance operational efficiency and improve the customer experience. A key focus is optimizing inventory management, striking a balance between ensuring product availability and reducing overall inventory levels. The company has made significant strides in this area, achieving over 99% in-stock levels for top-selling “never-out” SKUs while simultaneously reducing overall inventory by nearly 10% year-over-year.

Beyond inventory, Leslie’s is investing in enhancing the in-store and digital customer experience. The company is increasingly leveraging technology to provide personalized service and expert advice. The implementation of the AccuBlue water testing technology in stores has proven particularly effective, driving a significant increase in conversion rates. “Customers appreciate the expertise and personalized recommendations they receive,” said one retail consultant.

The company is also exploring opportunities to expand its service offerings and develop new revenue streams. While specific details remain under wraps, industry observers anticipate potential investments in installation services, subscription models, or digitally connected smart pool technologies. This reflects a broader industry trend toward providing comprehensive, end-to-end solutions for pool owners.

Navigating a Dynamic Market

The pool and spa industry is undergoing a period of rapid change, driven by evolving consumer preferences, technological advancements, and macroeconomic factors. The growing demand for home amenities, fueled by the “staycation” trend and the desire for outdoor leisure activities, continues to drive market growth.

The integration of smart technology is also transforming the industry. Digitally connected pool systems, offering remote control, automation, and real-time monitoring, are gaining traction among tech-savvy consumers. Energy efficiency and sustainability are also becoming increasingly important, with consumers seeking eco-friendly products and water conservation solutions.

Looking ahead, Leslie’s faces a number of challenges, including intensifying competition, fluctuating economic conditions, and the need to adapt to evolving consumer preferences. However, the company’s strong market position, robust infrastructure, and commitment to innovation position it well to navigate these challenges and capitalize on emerging opportunities. Analysts predict that the company’s success will hinge on its ability to execute its strategic transformation initiatives, enhance the customer experience, and differentiate itself in a crowded market. The ongoing refinement of its operations and focus on the customer experience may be the differentiating factors needed to thrive in the changing market.