Last Updated: 18 Sep 2024
Executive Summary
Leslies Inc. (LESL) is a leading spa and pool care retailer in the United States. The company has experienced challenges in recent quarters due to macroeconomic headwinds and increased competition. However, the company's long-term prospects remain favorable, supported by its strong brand recognition, expanding product portfolio, and growing e-commerce presence.
Company Overview
Leslies Inc. operates over 400 retail stores across the United States, offering a wide range of spa and pool care products and services. The company's target customer base includes homeowners, pool professionals, and commercial businesses. Leslies Inc. has a well-established brand and a loyal customer base.
Fundamental Analysis
Revenue: Leslies Inc. reported revenue of $1.36 billion in the past twelve months, representing a 6.8% decline year-over-year. The decline was primarily driven by lower consumer spending and increased competition.
Earnings: The company's earnings per share (EPS) for the past twelve months was $0.02, a significant decrease from the previous year's EPS of $0.15. This decline was due to higher operating costs and lower sales.
Profitability: Leslies Inc.'s gross profit margin and operating margin have declined in recent quarters. The company's gross profit margin is currently 49.4%, while its operating margin is 17.4%.
Balance Sheet: Leslies Inc. has a strong balance sheet with low debt and ample liquidity. The company's total debt-to-equity ratio is 0.23.
Technical Analysis
Chart: The stock price of Leslies Inc. has been trending downwards in recent months. The stock is currently trading below its 50-day and 200-day moving averages.
Indicators: The technical indicators for Leslies Inc. are mostly bearish. The Relative Strength Index (RSI) is below 30, indicating that the stock is oversold. The Moving Average Convergence Divergence (MACD) is also below zero, indicating that the stock is in a downtrend.
Short Term Outlook
In the short term, Leslies Inc. is likely to face continued challenges due to macroeconomic headwinds and increased competition. The company's revenue and earnings are expected to remain under pressure. However, the company's strong balance sheet and loyal customer base provide some support.
Long Term Outlook
The long-term outlook for Leslies Inc. is more favorable. The company's strong brand recognition, expanding product portfolio, and growing e-commerce presence position it well for future growth. The company is also expected to benefit from the increasing popularity of home improvement and outdoor living.
Analyst Recommendations
Analysts are divided on the outlook for Leslies Inc. The average analyst rating for the stock is "Hold." However, two analysts have a "Strong Buy" rating for the stock, while one analyst has a "Strong Sell" rating. The consensus analyst target price for Leslies Inc. is $3.57, which represents a potential upside of 23.9% from the current stock price.
