A securities class action has been filed in the USDC – AZ. against Leslie’s, Inc. (LESL) (“Leslie’s” or the “Company”) on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Leslie’s common stock between February 5, 2021 through July 13, 2023, both dates inclusive (the “Class Period”).

Leslie’s provides pool supplies and related equipment to end consumers, both residential and professional. Approximately 80% of the Company’s offerings are “nondiscretionary” products essential to the care of pools and spas, such as chemicals, equipment, cleaning accessories, and parts. Leslie’s SEC filings specifically state that “[d]ue to the non-discretionary nature of our products and services, our business has historically delivered strong, uninterrupted growth and profitability in all market environments[.]” As a result of the Company’s “highly predictable, recurring revenue model,” Leslie’s was able to sustain 59 consecutive years of sales growth since its inception in 1963.

The Complaint alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that:

• the Company’s growth was caused by customers over purchasing products;
• such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth;
• the Company prolonged the inflated customer demand by warning customers that Leslie’s could not “guarantee availability” of chemicals in the future; and
• any slowdown in sales was not a normalization of past seasonality but was due to the prior excess stockpiling. As a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times, thereby harming investors.

In response to the July 13, 2023 press release, the price of Leslie’s common stock declined more than 29%, from a closing price of $9.52 per share on July 13, 2023, to a closing price of $6.70 per share on July 14, 2023. Leslie’s common stock price continued to fall another $1.24 per share the following trading day, or over 18%, closing at $5.46 per share on July 17, 2023.

If you purchased Leslie’s common stock during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.