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Leslie's Pool Supply warns it may seek Chapter 11 after store closures
A Saks Global Luxury Pulse survey found only 28.0% of respondents felt optimistic about the economy, down 13.0 points from the prior survey, amid weak discretionary demand.
Leslie's Pool Supply is facing a potential Chapter 11 filing after closing 80 locations, with the struggling retailer citing the broader challenge of operating when customers are not buying. The situation is unfolding as luxury shoppers grow less optimistic about the economy, according to a Saks Global Luxury Pulse survey.
The survey, conducted between April 24 and April 28, found that 28.0% of respondents reported feeling optimistic about the economy, a decline of 13.0 percentage points versus the January survey and 17.0 points versus a year earlier, highlighting softer consumer sentiment.
Leslie's had previously reported signs of improvement around its second-quarter results in May, including overall revenue growth of 4.3% year over year and a 6.6% comparable sales increase. The company also cited a 26.0% improvement in adjusted EBITDA and total customer count growth of 8%, after taking cost-cutting actions earlier in the fiscal year.
Earlier store closures were part of a cost-reduction and operational restructuring plan during Q1 fiscal 2026, when the company also closed one distribution center in Illinois to streamline its supply chain and cut expenses. In SEC filings, Leslie's reported about $10.1 million in non-cash impairment charges related to store and asset closures, and for Q1 fiscal 2026 it posted an approximately $83 million net loss with sales down roughly 16% year over year, attributing the decline to weak demand and margin pressure.