3 Reasons LESL Is Risky and 1 Stock to Buy Instead
Leslie's stock has plummeted by 64.2% over the past six months, largely due to declining same-store sales and an unsustainable debt load that far exceeds its cash reserves. With a concerning net-debt-to-EBITDA ratio of 10×, the company faces significant financial risks that could jeopardize its long-term viability. Despite its established presence in the pool and spa retail market, Leslie's does not currently meet the quality thresholds that cautious investors prefer.
- The challenges facing Leslie's highlight the broader risks associated with small retailers in a competitive market, particularly those with high levels of debt and declining sales.
- What alternative strategies could Leslie's employ to turn around its fortunes and regain investor confidence?