Leslie’s (LESL) Declined on Earnings Miss

Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets continued their upward trend in the second quarter, exceeding expectations. Meanwhile US economy continues to show signs of economic slowdown as tighter credit conditions weigh on consumers and business confidence. Against this backdrop, the fund advanced +5.19% gross of fees (+4.93% net of fees) in the second quarter, ahead of the Russell 2000 Value Index’s +3.18% gain and relatively in line with the Russell 2000 Index’s +5.21% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ariel Small Cap Value Strategy 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 6, 2023, Leslie’s, Inc. (NASDAQ:LESL) stock closed at $6.00 per share. One-month return of Leslie’s, Inc. (NASDAQ:LESL) was -14.41%, and its shares lost 58.88% of their value over the last 52 weeks. Leslie’s, Inc. (NASDAQ:LESL) has a market capitalization of $1.104 billion.

Ariel Small Cap Value Strategy made the following comment about Leslie’s, Inc. (NASDAQ:LESL) in its Q2 2023 investor letter:

“Alternatively, several positions weighed on performance. Leading direct-to-consumer U.S. pool and spa care services company, Leslie’s, Inc. (NASDAQ:LESL), declined on an earnings miss primarily driven by slower sales due to unfavorable weather across key markets. Investor concerns regarding the potential deflation on the price of chlorine further weighed on shares. Nonetheless, management reiterated its 2023 guidance and long-term financial outlook. In our view, the company continues to differentiate itself through its loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience.”

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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 the Polen U.S. Small Company Growth 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.