Leslie's shares plunged 21% after missing earnings, citing weak sales, impairment charges, and store closures.

Leslie's, Inc. (LESL) shares fell 20.95% to $2.83 after reporting fourth-quarter adjusted earnings of 9 cents per share, missing the $1.29 estimate, despite revenue of $389.2 million exceeding expectations. The company reported a 6.5% drop in comparable sales, attributed to uncompetitive pricing and shifting consumer behavior, and recorded $183.8 million in impairment charges. In response, Leslie's plans to close 80 to 90 stores and two distribution centers, reduce inventory by 10%, and cut costs to boost EBITDA in 2026. Full-year 2026 revenue guidance of $1.18 billion at midpoint fell short of analyst forecasts, and EBITDA guidance of $65 million was below estimates. Analysts revised price targets lower, reflecting cautious outlooks despite ongoing efforts to improve pricing, customer retention through its loyalty program, and operational efficiency.