63-year-old outdoor retailer closes 80 stores

Americans person chopped backmost connected luxury spending, and that has impacted retailers that cater to discretionary spending.

As rising costs proceed to measurement connected Americans’ wallets, a Bankrate survey recovered that the bulk of U.S. adults (54%) accidental they are readying to walk little connected travel, dining, oregon unrecorded amusement this year, compared with past year. In 2024, 49% planned to walk little than they did successful 2023.

“The cumulative effects of ostentation and precocious involvement rates person been straining
households, contributing to grounds levels of recognition paper indebtedness and causing consumer
sentiment to plummet,” explained Bankrate elder manufacture expert Ted Rossman.

That has created a challenging operating situation for Leslie's Pools, the largest direct-to-customer marque successful the U.S. excavation and spa attraction industry, serving residential customers and excavation professionals nationwide.

The chain, which was founded successful 1963, closed 80 underperforming stores during its archetypal quarter, portion implementing a caller operating program based connected value.

A fig of large concatenation CEOs person talked astir worth during their astir caller net calls. Walmart, for example, said it was seeing much higher-income customers, portion McDonald's CEO Christopher Kempczinski talked astir refocusing connected worth during his company's first-quarter 2025 net call.

“We admit that consumers’ worth perceptions are astir influenced by our halfway paper pricing. We’re moving intimately and collaboratively with our U.S. franchisees connected this opportunity, and we’re processing ideas for however we mightiness code this arsenic an full system,” helium said.

Leslie's Pools CEO Jason McDonell shared a akin connection successful his Q1 net release.

"As we determination into the 2026 excavation season, we are implementing a strategical pricing transformation, a cardinal displacement to worth pricing supported by our 'New Low Prices, Same Great Quality' run launching to coincide with excavation season," helium shared.

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He stressed that contempt the closures and the company's caller struggles, helium believed it could instrumentality to growth.

"Through renewed pricing and revitalized marketing, we are well-positioned to turn our progressive lawsuit record by re-engaging lapsed consumers and attracting caller customers,” helium added.

• Leslie’s announced the closure of astir 80 underperforming stores arsenic portion of a cost-reduction and operational restructuring program during Q1 fiscal 2026, according to its Q1 net release.

• The institution besides closed 1 organisation halfway (Illinois) to streamline its proviso concatenation and trim expenses, which it besides included successful its Q1 filings.

• Leslie’s recorded astir $10.1 cardinal successful non-cash impairment charges related to store and plus closures, the institution reported.

• For Q1 fiscal 2026, Leslie’s reported a nett nonaccomplishment of astir $83 million and sales down astir 16% twelvemonth implicit year, citing anemic request and borderline pressure, it shared successful SEC filings.
  

Leslie's Pools has faced caller fiscal challenges with its banal listing.

"The company’s banal show has been nether unit passim 2025, culminating successful its removal from the S&P SmallCap 600 scale earlier this year," Pool Magazine, a starring work covering the excavation industry, shared.

This alteration indicates the institution has been struggling.

"Being portion of the S&P SmallCap 600 gives a institution visibility, provides passive money support, and signals capitalist confidence. Losing that lasting means Leslie’s nary longer met benchmarks for marketplace headdress and liquidity — a wide motion the banal has struggled to support momentum," the mag added.

S&P Global Ratings has downgraded the issuer recognition standing of U.S. specialty excavation proviso retailer, Leslie’s Poolmart Inc., from ’B’ to ’B-’ owed to weaker than expected concern prospects for fiscal 2025, according to Investing.com.

Related: Costco shares bold enlargement and maturation plans

After a roar play during the Covid pandemic, the excavation manufacture has been successful decline.

"The predominant inclination of 2024 reflects a play of modulation arsenic the excavation manufacture moves beyond the pandemic-induced surge of 2020 to 2022. While excavation licence registrations continued their diminution from highest levels, the gait of simplification slowed importantly compared to the erstwhile year, suggesting a stabilization successful demand," Pool and Spa Marketing shared.

Similar trends impacted the at-home workout marketplace arsenic good arsenic the furnishings and location betterment industries.

The excavation industry, however, does person 1 large hedge against a full marketplace collapse.

"Pool work continues to payment from a uncommon vantage successful location services: Maintenance isn’t optional. Once a homeowner owns a pool, recurring attraction becomes necessary, creating a dependable basal of ongoing demand," according to Skimmer’s 2026 State of Pool Service report.

The study intelligibly shows the opportunity: There are astir 10.7 cardinal pools successful the U.S., including 10.4 cardinal residential pools, and residential excavation owners walk an mean of astir $1,700 per twelvemonth connected maintenance.

"And involvement is rising, not fading. Total yearly hunt measurement crossed large excavation categories is up 22% from 2022 to 2025 (29.7 cardinal to 36.3 million), signaling that excavation attraction request is holding beardown good beyond the post-pandemic surge," it added.

Related: Struggling 55-year-old sit-down burger concatenation closing restaurants

This communicative was primitively published by TheStreet connected Mar 1, 2026, wherever it archetypal appeared successful the Retail section. Add TheStreet arsenic a Preferred Source by clicking here.