Q4 2024 Leslie's Inc Earnings Call Transcript
Key Points
- Leslies Inc (LESL) has a strong competitive advantage with over 1,000 stores located within 20 miles of 80% of pools in the U.S., providing a significant proximity advantage.
- The company is focusing on three strategic themes: customer centricity, convenience, and asset utilization, which are expected to drive long-term profitable growth.
- Leslies Inc (LESL) has a robust loyalty program with over 80% of DIY customers as members, providing valuable customer data for personalized solutions.
- The PRO business segment showed resilience with a low single-digit sales decline, outperforming the overall company sales decline.
- Leslies Inc (LESL) plans to pay down approximately $25 million of debt in the current quarter, aligning with their priority of reducing debt and improving financial health.
- Sales for the fiscal fourth quarter and full year 2024 were down 8%, reflecting continued softness in traffic and larger ticket and discretionary products.
- Adjusted earnings per share were only $0.02 for the fourth quarter, with a loss of $0.01 for the year, indicating financial challenges.
- Gross margin rate decreased by 105 basis points in the fourth quarter, largely due to deleverage on occupancy and distribution center costs.
- The company is experiencing continued softness in larger ticket and discretionary categories, impacting overall sales performance.
- Leslies Inc (LESL) is pausing new store growth and M&A activity to focus on debt reduction, which may limit expansion opportunities in the near term.
Good afternoon and welcome to the Fiscal Fourth Quarter and Full Year 2024 earnings conference call for Leslie's. (Operator Instructions) As a reminder, this conference call is being recorded and will be available for replay later today on the company's website.
I will now turn the call over to Matt Skelly, Vice President of Investor Relations
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Thank you, and good afternoon. I would like to remind everyone that comments made today may include forward-looking statements which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations.
These statements speak as of today and will not be updated in the future if circumstances change. Please review the cautionary statements and risk factors contained in the company's earnings press release and recent filings with the SEC.
During the call today, management will refer to certain non-GAAP
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