Why Leslie's Stock Is Diving After Hours

Leslie's Inc LESL shares are doing a little more than just taking a dip in Thursday's after-hours session. The stock is trading down nearly 20% after the company released preliminary results and announced a CFO transition.

What Happened: Leslie's said it expects fiscal third-quarter revenue to come in at $611 million versus estimates of $703.74 million, according to Benzinga Pro. The pool supply company anticipates adjusted earnings in a range of 39 cents to 41 cents per share versus estimates of 69 cents per share. 

Comparable sales are expected to be down 12% year-over-year, and the trend is expected to continue into the fourth quarter.

As a result, Leslie's lowered its full-year 2023 revenue outlook to a range of $1.43 billion to $1.45 billion. Full-year adjusted earnings are now expected to be between 28 cents and 32 cents per share.

"Our fiscal third quarter results were well below our expectations as low double digit traffic declines in our Residential and Pro businesses drove negative comps across both discretionary and non-discretionary categories," said Mike Egeck, CEO of Leslie's.

"While abnormal weather continued to pressure traffic levels, customer surveys conducted towards the end of the quarter also indicated increased price sensitivity and that consumers entered the pool season with a greater than normal amount of chemicals leftover from last year."

Leslie's also announced that CFO Steve Weddell is stepping down from his role, effective Aug. 7. He will be replaced by Scott Bowman, who is set to join the company as CFO designate on July 17. Weddell will serve as an advisor through the end of the year to help with the transition.

Leslie's said it would report full financial results for the third quarter after the close on Aug. 2. 

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LESL Price Action: Leslie's shares were down 18.3% after hours at $7.78 at the time of publication, according to Benzinga Pro.

Photo: Carl from Pixabay.