Leslie's (LESL) Q1 Earnings Report Preview: What To Look For

Pool products retailer Leslie’s (NASDAQ:LESL) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Leslie's beat analysts' revenue expectations by 2.6% last quarter, reporting revenues of $174 million, down 10.8% year on year. It was a decent quarter for the company, with strong earnings guidance for the full year but a miss of analysts' gross margin estimates.

Is Leslie's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Leslie's revenue to decline 5.6% year on year to $200.9 million, improving from the 6.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leslie's has missed Wall Street's revenue estimates three times over the last two years.

Looking at Leslie's peers in the consumer retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tractor Supply delivered year-on-year revenue growth of 2.9%, meeting analysts' expectations, and Sleep Number reported a revenue decline of 10.7%, in line with consensus estimates. Tractor Supply traded up 6.1% following the results while Sleep Number was also up 4.8%.

Read our full analysis of Tractor Supply's results here and Sleep Number's results here.

Investors in the consumer retail segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Leslie's is down 10.8% during the same time and is heading into earnings with an average analyst price target of $6.6 (compared to the current share price of $4.79).

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