F'2Q Sees Demand Acceleration Driven By Price Investments...

Research evidence excerpt

F'2Q Sees Demand Acceleration Driven By Price Investments...

Consumer

Retailing Broadlines & Hardlines - Market Weight

LESLIE'S, INC. (LESL) May 13, 2026

F'2Q Sees Demand Acceleration Driven By Price Rating:

Investments... Outperform

Price:

$1.43

The Wolfe Byte Price Target:

LESL reported relatively strong F'2Q results which saw the business accelerate $3

Prior: $2and cost savings benefit the bottom line. Pricing investments has helped accelerate % Upside:

transactions and further cost-cutting benefits should continue to benefit the 109.8%

business over the next 12 months. View LESL Model

View Comp Table

F'2Q results improve YoY and QoQ. Same-store sales increased +6.6% and Company Information

accelerated +15pts on a two-year basis from the prior quarter. Gross margins 52-Week Range $1 - $19

$13 Cap. (MM)improved +400bps YoY to 28.9% despite pricing investments while EBITDA margins Market Enterprise Value (MM) $1,032

also improved +400bps to -16.3%. EBITDA of -$30mm beat consensus at -$32mm. Shares Out. (MM) 9.3

Avg. Value Traded (MM) $0.13

Shift to everyday low price operator begins to drive positive momentum. The SI% of Float 0.0%

price investment began in March of this year and has been focused primarily on core Price Performance

chemical categories. Retail stores saw DD increase in transactions and a +350bps YTD LTM

improvement in conversion rates; water testing grew DD YoY. Management continues LESL (13)% (91)%

to expect a 100-150bps in margin headwinds from pricing, which was more than S&P 500 9% 27%

offset in the current quarter due to cost savings. 20

Costs savings are benefitting the bottom line. Leslie's finished its plan to close 80 1614

locations in F'26 which is expected to benefit EBITDA by $4-$10mm despite losing 1210

8$25-$35mm.