Leslie’s, Inc. (NASDAQ:LESL) Q1 2023 Earnings Call Transcript

Mike Egeck: Yes. We’re just €“ we’re really pleased that the loyalty file is performing. It’s now up to about 75% of our total sales. Membership continues to grow, and the members are continuing to get more productive for us, but probably what’s most encouraging for us is, as we look at the different cohorts in our file, we have a €“ I’m going to say, a limited number of loyalty members who are in our top cohort, despite in total accounting for 75% of sales. And the way we look at that is really a significant opportunity to continue to trade people up through those cohorts. So, a lot of the loyalty growth is coming from reactivations, right? Customers who have not €“ were in a loyalty program, maybe much earlier several years ago and have come back in as we marketing of it.

And also, we’re signing up at a nice rate, new loyalty members from our existing base, that’s predominantly in stores. And then also digitally, and those are predominantly brand-new customers to Leslie’s. So good, we feel really, really good about the loyalty file, not just for this quarter, but long-term as we continue to build its productivity.

Peter Benedict: Terrific. Thanks. Good luck guys.

Mike Egeck: Thank you.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Mike for closing comments.

Mike Egeck: Thank you, operator, and thank you all for joining us this afternoon. For those of you with pools, we’d suggest you start thinking about pool season because as I believe we made it clear at our call today, we certainly are preparing for it and looking forward to it. Thank you.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.