Here’s What Caused the Decline of Leslie’s (LESL)

Tourlite Capital Management, an investment management firm, released its second quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class gained -1.2% for Q2 2023 and -0.2% year to date. Since its inception in April 2022, the fund returned 4.9% compared to 0.3% and -7.1% for the S&P 500 and the Russell 2000, respectively. The portfolio is mainly concentrated on industrials, consumer, and technology sectors. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Tourlite Capital Management highlighted stocks like Leslie’s, Inc. (NASDAQ:LESL) in the second quarter 2023 investor letter. Headquartered in Phoenix, Arizona, Leslie’s, Inc. (NASDAQ:LESL) is a direct-to-consumer pool and spa care brand. On September 28, 2023, Leslie’s, Inc. (NASDAQ:LESL) stock closed at $5.49 per share. One-month return of Leslie’s, Inc. (NASDAQ:LESL) was -13.95%, and its shares lost 62.68% of their value over the last 52 weeks. Leslie’s, Inc. (NASDAQ:LESL) has a market capitalization of $1.01 billion.

Tourlite Capital Management made the following comment about Leslie’s, Inc. (NASDAQ:LESL) in its Q2 2023 investor letter:

“We observe numerous companies, many in the consumer and retail sectors, with unrealistic guidance and estimates for the second half of 2023. One such example is Leslie’s, Inc. (NASDAQ:LESL), which preannounced updated guidance on July 13th, before the start of earnings season. Initially indicating an acceleration in the second half of the year, LESL later revised their guidance to reflect a continuation of the trend from the prior quarter and a decline in the macroeconomic environment. While we currently do not hold a position in LESL, it serves as an illustration of the challenges companies may face in meeting their optimistic forecasts.”

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Leslie’s, Inc. (NASDAQ:LESL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Leslie’s, Inc. (NASDAQ:LESL) at the end of second quarter which was 22 in the previous quarter.

We discussed Leslie’s, Inc. (NASDAQ:LESL) in another article and shared Ariel Small Cap Value Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.