Leslie's Is Closing Stores: What It Means for Pool Pros

Leslie's, the largest pool supply retailer in the United States, closed 80 stores and a distribution center in less than two weeks in December 2025.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR The company lost 160,000 customers, burned through $237 million in net losses, and executed a reverse stock split to avoid delisting from the Nasdaq.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR

For independent pool service professionals, Leslie's decline is both a warning and an opportunity. This article breaks down exactly what's happening, why it matters, and what you should do about it.

What's happening at Leslie's

Leslie's, founded in 1963 by Phil Leslie Jr. in Southern California, grew to become the largest direct-to-consumer brand in the $15 billion U.S. pool and spa care industry.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR At its peak, the company operated 1,022 physical locations across 39 states—a physical network larger than its 20 largest competitors combined.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR

On November 25, 2025, management committed to a plan to close 80–90 underperforming U.S. stores and one distribution center.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR The speed was remarkable: 64 stores shut down within seven days of the announcement.[6]KTAR NewsPhoenix-based Leslie's closes 80 pool supply stores, January 2026ktar.com By January 3, 2026, the closures were substantially complete. As of April 2026, Leslie's operates approximately 890 locations.[4]ScrapeHeroNumber of Leslie's Pool Supplies locations in the USA, April 2026scrapehero.com

The closures targeted high-density markets where Leslie's stores were cannibalizing each other's sales. As one industry observer noted:

"Lots of the stores that are closing are ones they bought from smaller mom and pop stores... they have multiple stores that are within a few miles from each other. They are fighting themselves for customers."[7]RedditPool industry professional discussion, 2026reddit.com

Timeline of decline

Sources: Leslie's 10-K FY 2025, Leslie's 10-Q Q1 2026, Leslie's 8-K (Jan 2026)

The financial picture

Leslie's financials paint a clear picture of a company under severe stress. Revenue declined 6.6% year-over-year in FY 2025, while losses widened dramatically due to a $180.7 million goodwill impairment—an accounting acknowledgment that the company's acquisitions of smaller pool supply stores didn't deliver the value the company paid for them.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR

Sources: Leslie's 10-K FY 2025, Leslie's 10-Q Q1 2026

The Q1 2026 quarter (ended January 3, 2026) was even worse: sales fell 16% year-over-year to $147.1 million, with a net loss of $83 million. The company recorded $18.5 million in one-time charges for store closures, including inventory impairments and severance costs.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR

The balance sheet tells the deeper story. With $757 million in debt against just $61 million in adjusted EBITDA for FY 2025, Leslie's leverage ratio spiked to roughly 12.5x—a level that signals serious financial distress.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR For context, a leverage ratio above 5x is typically considered high-risk. At 12.5x, debt service consumes an outsized share of cash flow, leaving little room for investment in stores, staff, or customer experience.

Metric	FY 2024	FY 2025	Change
Revenue	$1.33B	$1.24B	-6.6%
Adjusted EBITDA	$108.7M	$61.4M	-43.5%
Net Income / (Loss)	-$49.4M	-$237.0M	—
Store Count	1,009	1,022	+1.3%

Source: Leslie's 10-K FY 2025

The stock price signal

Before the 1-for-20 reverse stock split in September 2025, Leslie's stock had traded below $1.00 for 30 consecutive days—touching $0.43 per share in July 2025.[5]Pool MagazineWhat Leslie's Reverse Stock Split Signals About the Company's Future, 2025poolmagazine.com The reverse split—which combined every 20 shares into one—was an explicit move to avoid delisting from the Nasdaq.

It didn't solve the underlying problems. By February 2026, Leslie's received another Nasdaq notification for failing to maintain a minimum market value of publicly held shares of $15 million.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR Meanwhile, the company changed auditors from Ernst & Young to Grant Thornton in January 2026 following reported material weaknesses in internal controls.[3]Leslie's, Inc.Form 8-K, Auditor Change, January 27, 2026SEC EDGAR The CFO role has also turned over twice in twelve months: Scott Bowman departed in March 2025, Tony Iskander served as interim CFO, and Jeff White was appointed permanently later that year.[9]Leslie's, Inc.Executive Leadership Changes Press Release, March 17, 2025ir.lesliespool.com

The National Law Review placed Leslie's at #3 on its 2026 bankruptcy watch list of retailers, citing the company's dwindling cash position ($64 million), worsening debt-to-equity ratio, and persistent revenue decline.[11]National Law ReviewBankruptcy Watch List: Ten Retailers to Watch for a Possible Bankruptcy in 2026natlawreview.com

Why Leslie's is struggling

The closures aren't a surprise to anyone who's been paying attention. Several forces have been converging against Leslie's business model for years.

Aggressive acquisition strategy backfired

Leslie's has been controlled by private equity firm L Catterton since 2017. L Catterton—which holds approximately 45% of Leslie's equity—drove an aggressive growth-through-acquisition strategy, snapping up independent pool supply stores across the country.[8]Leslie's, Inc.Proxy Statement (DEF 14A), 2025SEC EDGAR The $180.7 million goodwill impairment recorded in FY 2025 is an accounting admission that many of these acquisitions were overpaid.[1]Leslie's, Inc.Annual Report (Form 10-K), FY 2025SEC EDGAR The result: stores in high-density markets competing with each other rather than with competitors.

Customers left

Leslie's reported losing more than 160,000 residential customers, with store traffic declining 8.6% year-over-year.[5]Pool MagazineWhat Leslie's Reverse Stock Split Signals About the Company's Future, 2025poolmagazine.com The company attributed the losses primarily to its "price-value equation"—customers didn't think they were getting a good deal compared to alternatives.

Online competition intensified

The same dynamic hitting every brick-and-mortar retailer hit Leslie's hard. Pool professionals and homeowners increasingly buy pumps, robotic cleaners, and chemicals online. As one pro noted, they're "all fighting the online sellers for lots of things" including vacuum hose links and robotic cleaners.[7]RedditPool industry professional discussion, 2026reddit.com

Staff expertise declined

Multiple pool professionals have reported that Leslie's in-store staff lack the technical knowledge to serve them properly. One current employee acknowledged the problem directly:

"I work currently and I have had very little human training in over a year so I am a example of lack of training and knowledge given."[7]RedditLeslie's retail employee, 2026reddit.com

For pool service professionals who need knowledgeable counter staff who can identify a part by sight or advise on a chemical compatibility question, this is a dealbreaker.

The industry shifted from DIY to DIFM

Perhaps most significantly, the residential pool market is shifting from "Do-It-Yourself" to "Do-It-For-Me."[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR Younger pool owners—millennials inheriting or buying homes with pools—increasingly prefer hiring a professional rather than maintaining their pools themselves. This is good news for pool service businesses and bad news for a retailer whose core model depends on homeowners walking in to buy chemicals.

The residential pool market includes 9 million pools ($7 billion aftermarket) and 5.5 million spas ($2.5 billion addressable market).[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR As more of those pool owners hire pros instead of buying their own chemicals, the pie for DIY retailers like Leslie's shrinks—and the pie for independent pool service companies grows.

Impact on pool service professionals

Whether you shop at Leslie's or not, their decline has real implications for your business.

Supply chain gaps

The most immediate impact is on independent operators—"single polers"—who relied on Leslie's for convenient weekend and after-hours chemical pickups when wholesale distributors like SCP are closed.[7]RedditPool industry professional discussion, 2026reddit.com If your nearest Leslie's closed, you need a backup plan. Options include:

• Pool Corporation (SCP/Superior) — The dominant wholesale distributor with 445+ locations. If you don't have an account, now's the time.
• Heritage Pool Supply (Home Depot) — Home Depot's professional-facing pool supply arm.
• Pinch A Penny — Franchise model with strong presence in the Southeast and growing markets.
• Local independent dealers — Often overlooked but frequently offer better trade pricing and personalized service.

Pricing changes

Leslie's is pivoting to a "value pricing" model for the 2026 season, abandoning its previous high-low promotional approach in favor of everyday competitive prices.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR CEO Jason McDonell described this as a "strategic pricing transformation" designed to re-engage customers and drive store traffic.

For pros, this could actually be beneficial. Trade pricing on chemicals like chlorine at Leslie's is already competitive in many markets. But other distributors often beat Leslie's on parts like filter grids and specialty equipment. The key is to price-shop across suppliers rather than defaulting to any single source. Use a tool like our cost per pool calculator to understand exactly what you're spending per stop, and adjust your supply chain accordingly.

The Home Depot question

Adding to the uncertainty, there are persistent industry rumors about a potential Home Depot acquisition of Leslie's. One former corporate employee noted:

"Home Depot is currently considering buying out Leslie's, which they recently also bought out Leslie's biggest competitor."[7]RedditFormer Leslie's corporate employee, 2026reddit.com

Home Depot already owns Heritage Pool Supply Group, making them a logical acquirer. A Home Depot acquisition would further consolidate the retail pool supply market and could change trade pricing dynamics for professionals.

What Leslie's is trying to do about it

Leslie's management is calling their response a "transformation journey." The plan has several pillars:[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR

• Store optimization: Close underperforming locations and concentrate on stronger markets
• SKU reduction: Remove 2,000+ slow-moving products to simplify inventory
• Value pricing: Shift from promotional pricing to everyday competitive prices
• Cost reduction: Target $7–12 million in direct cost savings, reinvested into price competitiveness
• Inventory reduction: Cut inventory 10% year-over-year
• Consultative approach: Leverage AccuBlue water testing to drive customer engagement in remaining stores

CEO McDonell framed it this way: "This strategy positions our field organization to leverage our proprietary 10-point AccuBlue water testing, enabling a consultative in-store approach that drives consumer engagement."[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR

Whether this plan can work against $757 million in debt and a declining customer base remains to be seen. New board member John Hartmann brings retail turnaround experience, but the math is challenging at 12.5x leverage.

What this means for your pool service business

If you're running an independent pool service company, the Leslie's situation creates several concrete opportunities.

Pick up displaced customers

Every closed Leslie's location had a base of DIY pool owners who relied on that store for water testing and chemical advice. Many of those homeowners are now looking for an alternative—and the easiest alternative is hiring a professional. If a Leslie's near you closed, consider targeted marketing in that area. The 160,000 customers Leslie's lost didn't stop owning pools.

Diversify your supply chain

If Leslie's was your go-to for emergency chemical runs, you're already experiencing the pain. Build relationships with multiple suppliers now. Establish accounts with SCP, your local independent dealer, and at least one online backup. Know your true service costs so you can evaluate which supplier offers the best overall value, not just the lowest sticker price.

Position yourself as the expert

One of the recurring complaints about Leslie's is that their staff can't match the expertise of an experienced pool professional. Lean into this advantage. When you're at a customer's backyard, you're not just testing water—you're providing contextualized advice based on that specific pool, that specific equipment, and that specific homeowner's usage patterns. No retail store can replicate that.

Review your pricing

The DIY-to-DIFM trend that's hurting Leslie's is the same trend that's filling your route. If demand for your services is growing while DIY retail is declining, make sure your pricing reflects that value. Many pool pros are still undercharging relative to the value they deliver. Use our service price calculator to benchmark your rates against your local market.

The bigger picture: industry consolidation

Leslie's closures are part of a broader consolidation trend in the pool industry. Pool Corporation (PoolCorp) dominates the wholesale distribution side with 85% market share.[2]Leslie's, Inc.Quarterly Report (Form 10-Q), Q1 FY 2026SEC EDGAR PoolCorp acquired Porpoise Pool & Patio—parent company of Pinch A Penny, the largest pool retail franchisor with ~260 locations—in late 2021.[10]Pool CorporationAcquisition of Porpoise Pool & Patio Press Release, November 10, 2021GlobeNewsWire Home Depot acquired Heritage Pool Supply. Private equity continues to roll up pool service companies through platforms like National Pool Partners and Poolwerx.

For independent operators, this consolidation has a silver lining: customers increasingly value the personal service that only an independent company can provide. When the nearest pool supply store is a 30-minute drive and staffed by undertrained seasonal workers, a weekly visit from a knowledgeable pro who knows their pool becomes more valuable than ever.

The pool industry isn't shrinking—there are over 14 million pools and hot tubs in the United States, and the aftermarket is worth $15 billion annually. What's changing is how that money flows. Less of it goes through retail stores. More of it goes through professionals.

If you're running a pool service business and handling everything with paper or spreadsheets, now is a good time to professionalize your operations. Pool service software can help you manage routes, track chemicals, invoice customers, and capture leads from displaced DIY homeowners looking for professional help.