What Happened?

Shares of pool products retailer Leslie’s (NASDAQ: LESL) fell 2.3% in the morning session after the stock continued its recent downward trend amid what appeared to be technical selling pressure. The move extended a losing streak, as the shares had also fallen on the previous trading day. The stock had declined in six of the ten prior trading sessions, contributing to a significant drop over that period. According to market data, a technical sell signal was issued from a pivot point in the previous week, indicating further downward pressure until a new price floor was established.

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What Is The Market Telling Us

Leslie’s shares are extremely volatile and have had 86 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock dropped 17.2% on the news that the company reported third-quarter 2025 results that featured a massive earnings miss and weak forward guidance. 

While revenue of $389.2 million beat analysts' expectations, it still represented a 2.2% decline from the same quarter last year. The bigger story was the company's profitability, as its adjusted earnings per share of $0.09 missed Wall Street's consensus by a staggering 93.1%. Furthermore, guidance was disappointing, with the full-year revenue forecast coming in 4.4% below estimates and the EBITDA forecast for the upcoming financial year also missing expectations. A 6.5% drop in same-store sales underscored weakening consumer demand, painting a challenging picture for the retailer.

Leslie's is down 94.3% since the beginning of the year, and at $2.59 per share, it is trading 95.1% below its 52-week high of $53 from December 2024. Investors who bought $1,000 worth of Leslie’s shares 5 years ago would now be looking at an investment worth $6.44.

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