Leslies Inc

Leslie's, Inc. withdrew its full-year fiscal 2026 sales and adjusted EBITDA guidance and said it expects capital expenditures to come in well below $20 million. CEO Jason McDonell said the company is exploring strategic alternatives with financial stakeholders that may include a deleveraging transaction, potentially combined with one or more financing transactions, though no determinations have been made. Third-quarter sales fell 8.4% to $458.5 million, with comparable sales down 6.2%, while adjusted EBITDA declined to $55.7 million from $81.6 million a year earlier. Gross profit margin narrowed to 36.5% from 39.6%, and net income improved by $26.1 million to $47.8 million, helped by a $17.5 million one-time credit card interchange fee settlement gain. Inventory fell 15% to $233.4 million, and the company ended the quarter with $30 million outstanding under its revolving credit facility and $753 million of net long-term debt.

Leslie's shares plunged 47% in after-hours trading following a Bloomberg report that the pool supplier is evaluating options to lighten its debt load, including a possible Chapter 11 bankruptcy. The company has been holding confidential talks with creditors to extend its debt, according to people familiar with the matter, though no final decision has been made. Leslie's is working with Centerview Partners and receiving legal advice from Simpson Thacher & Bartlett, while a group of creditors is working with Houlihan Lokey and Akin Gump Strauss Hauer & Feld. Shares of Leslie's have sunk more than 75% over the past year.