Leslie’s Q2 Sales Rise 4.3% as Gross Margin Hits 28.9%
Leslie’s reported Q2 sales of $184.7 million, up 4.3% with comparable sales growth of 6.6% and customer count up 8% year-over-year. Gross margin expanded by 410 basis points to 28.9% while adjusted EBITDA loss narrowed by $9.2 million to $26.8 million.
1. Q2 Performance Highlights
Leslie’s Q2 ended April 4, 2026 reported sales of $184.7 million, up 4.3% year-over-year, with comparable sales rising 6.6% and total customer count growing 8%, driven by the new “Price Drop” initiative, targeted marketing and a consultative in-store approach.
2. Profitability and Margin Improvements
Gross profit increased 21.4% to $53.3 million, lifting gross margin to 28.9% from 24.8%, while SG&A expenses held at $92.2 million—220 basis points lower as a percentage of sales. Adjusted EBITDA loss improved by $9.2 million to $(26.8) million despite a $1.2 million non-cash impairment charge.
3. Balance Sheet and Liquidity
Inventories decreased 21.7% to $262.4 million, cash and cash equivalents totaled $16.9 million, and total liquidity stood at $97.1 million, supported by $9.5 million in capital expenditures and ongoing cost optimization efforts.
4. Full-Year Fiscal 2026 Outlook
Leslie’s reaffirmed guidance for fiscal 2026 sales of $1.10–$1.25 billion, adjusted EBITDA of $55–$75 million and capital expenditures of $20–$25 million, noting that seasonal demand will drive the majority of results in the second half of the year.