By Elias Schisgall

Leslie's posted a wider fourth-quarter loss and said it plans to close between 80 and 90 underperforming stores as the spa and pool care company looks to reduce its overhead and regain investor confidence.

The company is aiming for a 10% year-over-year reduction in inventory as part of the cost-cutting measures. It also plans to close one of its distribution centers, Leslie's said Tuesday.

Leslie's Chief Executive Jason McDonell said he would "work with speed and urgency to improve Leslie's operations and establish a clear path to financial recovery," projecting cost reductions between $7 million and $12 million as a result of the restructuring.

"These initiatives represent the next phase of our strategic transformation plan, focused on strengthening our balance sheet, optimizing our cost structure, and rebuilding stakeholder confidence," he said. "We remain committed to executing this strategic transformation with urgency and delivering the results our customers, employees and investors expect."

The company reported a fourth-quarter loss of $162.8 million, or $17.54 a share, compared with a loss of $9.9 million, or $1.07 a share, a year earlier. The wider loss was driven by a $183.8 million impairments charge.

Adjusted earnings were 9 cents a share. Analysts polled by FactSet were expecting $1.36 a share.

Revenue fell to $389.2 million, down from $397.9 million a year earlier. Analysts were expecting revenue of $371.7 million.

Leslie's said it is projecting revenue for fiscal year 2026 between $1.1 billion and $1.25 billion.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

December 02, 2025 17:41 ET (22:41 GMT)

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