Leslie’s Inc (NASDAQ:LESL) shares fell 44.20% in Wednesday’s after-hours trading after the pool and spa care retailer reported third-quarter 2026 financial results.

The stock closed Wednesday’s regular session up 0.75% at $1.32 before falling 44.20% to $0.74 in after-hours trading.

Leslie’s is a direct-to-customer pool and spa care company serving residential customers and pool professionals across the U.S.

Q3 Sales, Gross Profit Decline

Leslie’s reported third-quarter sales of $458.5 million, down 8.4% from $500.3 million a year earlier. Comparable sales decreased 6.2%.

Gross profit fell 15.5% to $167.1 million, while gross margin declined to 36.5% from 39.6%.

SG&A expenses decreased to $106.4 million from $129.6 million. Adjusted EBITDA fell to $55.7 million from $81.6 million.

Net income increased to $47.8 million from $21.7 million, while adjusted net income rose to $37.8 million from $25.2 million.

Diluted EPS was $5.01, compared with $2.34 a year earlier. Adjusted diluted EPS was $3.96, compared with $2.72.

Read Also: Magic Johnson Congratulates Good Friends Bob Iger and Josh Kushner on Buying the Lakers: Is the Franchise Headed for a Shakeup?

Strategic Alternatives And Outlook

Leslie’s said it has begun exploring strategic alternatives with certain financial stakeholders to provide additional financial flexibility.

The company said the alternatives may include a deleveraging transaction, potentially combined with one or more financing transactions.

Leslie’s also withdrew its previous full-year fiscal 2026 outlook, citing macroeconomic softness and uncertainty around its ability to drive consumer behavior.

Nine-Month Results

For the first nine months of fiscal 2026, sales fell 7.3% to $790.4 million, while comparable sales declined 5.5%.

Gross profit declined 14.5% to $247.5 million. Adjusted EBITDA was a loss of $11.4 million, compared with positive adjusted EBITDA of $16.2 million a year earlier.

Net loss increased to $87.7 million from $74.2 million, while adjusted net loss increased to $79.7 million from $66 million.

Price Action

Leslie’s has a market capitalization of approximately $12.35 million.

The stock has a 52-week high of $12.53 and a 52-week low of $0.80.

LESL shares were down 77.04% over the past year.

Benzinga Edge Stock Rankings show negative rankings across the short-, medium- and long-term time frames.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Also: Iveda Solutions (IVDA) Stock Is Trending Overnight—Here's Why It Jumped Over 37% After Hours

Photo Courtesy: Bigc Studio on Shutterstock.com