Leslie's Incorporated
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of those who acquired Leslie’s, Inc. (“Leslie” or the “Company”) (NASDAQ: LESL) securities during the period from February 5, 2021 through July 13, 2023, inclusive (the “Class Period”). Investors have until November 7, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On July 13, 2023, Leslie issued a press release announcing disappointing preliminary results for its fiscal third quarter of 2023 ended on July 1, 2023, including a 9% year-over-year sales decline and a cut to the Company’s fiscal 2023 guidance. In addition, the Company announced that its Chief Financial Officer would depart the following month. These revelations shocked analysts, resulting in several downgrades, with one firm concluding that pretty much everything in the Company’s preliminary earnings release was more negative than we could have anticipated. On this news, the price of Leslie shares declined by $2.82, or approximately 29.62%, from $9.52 per share to close at $6.70 on July 14, 2023. Leslie’s common stock price continued to fall another $1.24 per share the following trading day, closing at $5.46 per share on July 17, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Leslie’s growth was caused by customers over purchasing products; (ii) such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth; (iii) the Company prolonged the inflated customer demand by warning customers that Leslie could not guarantee availability of chemicals in the future; and (iv) any slowdown in sales was not a normalization of past seasonality, but was due to the prior excess stockpiling.
On July 13, 2023, Leslie issued a press release announcing disappointing preliminary results for its fiscal third quarter of 2023 ended on July 1, 2023, including a 9% year-over-year sales decline and a cut to the Company’s fiscal 2023 guidance. In addition, the Company announced that its Chief Financial Officer would depart the following month. These revelations shocked analysts, resulting in several downgrades, with one firm concluding that pretty much everything in the Company’s preliminary earnings release was more negative than we could have anticipated. On this news, the price of Leslie shares declined by $2.82, or approximately 29.62%, from $9.52 per share to close at $6.70 on July 14, 2023. Leslie’s common stock price continued to fall another $1.24 per share the following trading day, closing at $5.46 per share on July 17, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Leslie’s growth was caused by customers over purchasing products; (ii) such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth; (iii) the Company prolonged the inflated customer demand by warning customers that Leslie could not guarantee availability of chemicals in the future; and (iv) any slowdown in sales was not a normalization of past seasonality, but was due to the prior excess stockpiling.