Leslie's, Inc. (NASDAQ: LESL)

Leslie’s, Inc. operates as a leading retailer and service provider in the U. S. pool and spa aftermarket industry. Founded in 1963, the company has over 6 decades of experience and today runs more than 1,000 retail locations under the Leslie’s and In the Swim brands. It maintains an integrated omnichannel strategy that includes ecommerce websites, a mobile app and presence on online marketplaces such as Amazon, eBay and Walmart. Leslie’s also runs a wholesale specialty pool and spa parts distribution business, operates an integrated manufacturing plant and manages a hub and spoke distribution network across the continental United States. The company offers a broad assortment of pool and spa chemicals, equipment parts, cleaning and maintenance supplies, safety and recreational products, many of which are exclusive to Leslie’s. In addition to product sales, it provides complimentary in store water testing via its AccuBlue system, equipment installation and repair services and on site maintenance for residential and commercial customers.

Leslie’s generates revenue mainly from the sale of its proprietary and third party pool and spa products. More than 85% of its product assortment consists of non discretionary items such as chemicals, new and replacement parts, cleaning and maintenance equipment and safety related goods. Proprietary brands and custom formulated products represent over 55% of total sales and about 82% of chemical sales, contributing to higher gross margins. Service revenue comes from water analysis, installation, repair and maintenance contracts. The company serves residential pool and spa owners, professional pool service operators and commercial customers including hotels, apartment complexes and municipal agencies.

Leslie’s holds a leading position in the fragmented U. S. pool and spa aftermarket market as the largest direct to consumer brand with a nationwide physical footprint that exceeds the combined store count of its 20 largest competitors. The company’s competitive advantages stem from its proprietary brands, exclusive water testing technology such as AccuBlue and AccuBlue Home, a loyal customer base reinforced by programs like Pool Perks and a strong omnichannel presence that integrates stores, mobile apps and online marketplaces. Leslie’s also benefits from vertical integration in manufacturing and distribution, which provides cost efficiencies and product availability. Competitors include regional independent retailers, home improvement chains such as Home Depot and Lowe’s, mass market retailers like Walmart and Costco, online marketplaces including Amazon and eBay and wholesale distributors such as Heritage Pool Supply Group and Pool Corporation.

Leslie’s customer base consists of residential pool and spa owners, professional pool service providers and commercial operators such as hotels, apartment owners and municipal agencies. The company reports having a database of over 12,000,000 consumers who have interacted with its retail stores, ecommerce platforms or service offerings. While specific customer names are not disclosed in the filing, Leslie’s relationships extend to major hotel chains, apartment management firms, county and state government entities and independent sole proprietors.