Leslie’s shares fall on lower-than-expected 2023 steering By Investing.com

By Sam Boughedda 

Leslie’s, Inc. (NASDAQ:) shares tumbled Wednesday, at present down greater than 8%, after the corporate reported its fiscal fourth quarter earnings report.

The retailer of swimming pool provides earnings of $0.35 per share, $0.03 higher than the analyst estimate of $0.32, with income for the quarter coming in at $475.6 million versus the consensus estimate of $470.51M. Comparable gross sales elevated by 10.2%.

“We’re happy to shut out the yr on a powerful be aware with 16.3% gross sales development, a 30.1% improve in internet earnings, and a 21.3% improve in Adjusted EBITDA for the fourth quarter. This efficiency was enabled by the excellent work of our provide chain group driving sturdy DC efficiency within the quarter. For the complete yr, execution of our strategic development initiatives resulted in document gross sales, gross revenue and Adjusted EBITDA, in addition to market share features,” commented Mike Egeck, Chief Government Officer of the corporate.

Regardless of acknowledging the difficult macro backdrop, the corporate stays constructive, though its steering got here in beneath expectations. The corporate sees FY2022 EPS between $0.78 and $0.86, beneath consensus expectations of $0.93, with income anticipated to be between $1.56B and $1.64B, above the $1.56B anticipated.

Following the earnings launch, Goldman Sachs analysts mentioned: “LESL reported 4Q22 adjusted EPS of $0.35, higher than GS/consensus (FactSet) estimates of $0.30/$0.31. SSS development of +10.2% was increased than GS/consensus of +9.0%/+8.6%. LESL’s adjusted EBITDA was $99.5 mn, barely above the GS/consensus estimates of $99.2 mn/$96.0 mn. LESL’s stock elevated +82% YoY in 4Q22 vs. 3Q22 +61% YoY. Administration attributed LESL’s strong 4Q22 outcomes to their provide chain group’s capacity to drive sturdy DC efficiency.”

“Though This fall was a top quality beat with higher comps and fewer gross margin stress than estimated, we anticipate stress on LESL’s inventory at the moment given the lower-than-expected 2023 steering.”