Leslie's, a pool-supply retailer based in Phoenix, closed 80 underperforming stores and a distribution center in Illinois as part of a rapid restructuring ahead of the spring pool season. The shutdowns were completed in its fiscal first quarter as the company moved to reset operations.
The company recorded a $10.1 million noncash impairment charge related to the closures. It reported a quarterly net loss of $83.0 million and adjusted EBITDA of negative $40.3 million while working to reduce inventory and cut slow-moving products, as reported by Leslie’s.
An 8-K filing with the Securities and Exchange Commission shows the restructuring was locked in with a Nov. 25, 2025 plan to close roughly 80 to 90 U.S. stores and a single distribution center, with estimated pre-tax exit charges of $12 million to $17 million to finish the job, according to the SEC. The filing noted the company expected the closures to be substantially wrapped up by the end of its first fiscal quarter of 2026, a timeline Leslie’s has now hit.
Management Bets Store Cuts Will Lift Margins
Executives told analysts the store closures are just one piece of a wider reset that also includes a pricing overhaul, optimization of the distribution-center network and cutting more than 2,000 slow-moving SKUs in a bid to trim costs and speed up inventory turns. Although shutting doors will dent revenue, Leslie’s expects the store exits to shave about $25 million to $35 million off annual sales while still improving annualized EBITDA by roughly $4 million to $10 million, according to MarketBeat coverage of the earnings call.
What It Means In Phoenix And Beyond
The closures were spread across the country rather than clustered in one region, but the shake-up lands close to home in Phoenix, where Leslie’s maintains its corporate headquarters and remains a major local employer. Customers whose neighborhood outlets have gone dark are being nudged toward online ordering, buy-online-pick-up-in-store options and nearby surviving locations, as the retailer leans harder into digital and app-driven sales, according to the Phoenix Business Journal.
Stores, Staff And Customer Outreach
Leslie’s said restructuring costs, including severance and senior executive transition expenses, were recorded in selling, general and administrative expenses as the plan rolled out. The company is also trying to keep loyal pool owners from drifting away by contacting former-store customers with personalized offers and steering them toward nearby locations and e-commerce channels, according to Leslie’s. The message: your local storefront may be gone, but the chemicals and parts are still only a few clicks or a short drive away.
What To Watch Next
Despite the rough quarter and network retrenchment, management reaffirmed its full-year outlook, calling for net sales of about $1.1 billion to $1.25 billion and adjusted EBITDA in the $55 million to $75 million range as the transformation plays out, a key takeaway highlighted in MarketBeat coverage of the call. Investors and local customers alike will be watching to see whether leaner inventories and a new pricing strategy actually translate into steadier store traffic and healthier margins for the Phoenix-based chain as temperatures climb.
For now, Leslie’s says the restructuring is meant to preserve liquidity and set the stage for future growth, even as it works to win back lapsed shoppers and manage margin pressure from lower everyday prices. Phoenix residents who rely on Leslie’s to keep their pools from turning swampy may want to double-check the company’s app or call nearby stores to confirm hours and services while the retailer finishes reworking its network.
