Phoenix-based pool retailer Leslie’s closes 80 underperforming stores and an Illinois distribution center amid losses

Store closures follow a late-2025 restructuring plan

Leslie’s Inc., a publicly traded pool and spa care retailer headquartered in Phoenix, has closed 80 underperforming stores across the United States and shut down a distribution center in Illinois. The moves were executed during the company’s fiscal first quarter of 2026, which ended Jan. 3, 2026, and were disclosed alongside quarterly results released on Feb. 17, 2026.

The closures stem from a plan approved on Nov. 25, 2025 to streamline operations and improve long-term profitability. The plan targeted approximately 80 to 90 U.S. stores identified as underperforming and projected that the process would be substantially completed by the end of the first fiscal quarter of 2026.

Financial impact: impairment charges and wider quarterly loss

In the fiscal first quarter, Leslie’s reported sales of $147.1 million, down 16.0% from $175.2 million in the comparable prior-year period. Comparable sales declined 15.5% year over year.

The company recorded a non-cash impairment charge of $10.1 million tied to asset write-offs related to the closure of the 80 stores and the Illinois distribution center. Leslie’s also reported $6.4 million of non-cash impairment affecting gross margin in the quarter.

Net loss for the quarter totaled $83.0 million, compared with a net loss of $44.6 million in the same quarter a year earlier. Adjusted EBITDA was negative $40.3 million, compared with negative $29.3 million in the prior-year quarter.

What the plan estimated for exit costs

When the restructuring plan was approved, Leslie’s estimated total pre-tax charges of approximately $12.0 million to $17.0 million to be recognized in the first fiscal quarter of 2026, primarily consisting of:

• Impairment of long-lived assets estimated at approximately $8.0 million
• Inventory write-offs estimated at approximately $4.0 million to $9.0 million

The company indicated at that time it could not estimate in good faith the portion of charges that would result in future cash expenditures.

Liquidity and seasonality remain central to the outlook

As of Jan. 3, 2026, Leslie’s reported cash and cash equivalents of $3.6 million and total liquidity of $128.3 million from cash on hand and available borrowings under its credit facility. Inventories were reported at $210.0 million, down 22.5% from $271.1 million a year earlier.

Leslie’s stated that, consistent with the seasonal nature of the pool and spa industry, it typically generates the majority of sales and earnings during the second half of the year.

The company reiterated its full-year fiscal 2026 expectations, projecting sales of $1.10 billion to $1.25 billion and adjusted EBITDA of $55 million to $75 million, reflecting the impact of store closures on revenue as well as the addback of expected closure-related costs within its guidance framework.