Leslie’s Pool Supply Store To Close Upwards of 100 stores in 2026

The pool and spa industry is facing another clear sign of economic pressure as Leslie’s, Inc., the largest pool and spa products retailer in the United States, announced plans to close between 80 and 90 underperforming stores. The Phoenix-based company will also shut down one of its distribution centers as part of a broader effort to stabilize operations and improve profitability heading into 2026.

The announcement came alongside the company’s fourth-quarter and fiscal year 2025 earnings report, which painted a mixed picture. While fourth-quarter sales slightly exceeded internal expectations, the overall year showed continued strain. Annual revenue fell approximately 6.6% to $1.24 billion, down from $1.33 billion the previous year. More concerning was the company’s reported net loss of $237 million — a sharp increase compared to its loss in fiscal 2024.

The Root Cause

Leslie’s CEO Jason McDonell acknowledged the challenges and emphasized that the closures are part of a necessary reset. In the company’s earnings release, he noted that leadership is acting with urgency to improve operations and position the retailer for long-term recovery.

For many in the industry, the move does not come as a complete surprise. Like much of specialty retail, Leslie’s has faced shifting consumer behavior, inflation-driven cost pressures and softer demand following the pandemic-era surge in backyard spending. During the height of COVID-19, homeowners invested heavily in pools and outdoor living upgrades. But as that surge faded, so did some of the extraordinary demand for pool chemicals, equipment and accessories.

Compounding the issue is a noticeable decline in foot traffic. The company reported an 8.6% drop in store visits compared with the prior year and a loss of more than 160,000 residential customers. For a retailer operating more than 1,000 stores nationwide, those figures represent a significant impact.

At the same time, investor confidence has taken a hit. Leslie’s stock price, which once traded near $45 per share, has fallen dramatically over the past year, reflecting broader concerns about the company’s financial outlook and the health of discretionary retail spending.

The planned store closures are part of what leadership describes as a “right-sizing” of the company’s retail footprint. By eliminating underperforming locations, Leslie’s aims to reduce overhead costs such as rent, utilities and labor, while concentrating resources on stronger-performing markets.

In addition to shuttering stores, the company outlined several cost-control and operational initiatives. Inventory levels are expected to decline by roughly 10% year over year, helping free up cash and reduce carrying costs. Leslie’s also plans to eliminate more than 2,000 underperforming stock-keeping units (SKUs) to streamline its product assortment. Management estimates it will cut between $7 million and $12 million in direct costs, funds that can be reinvested in customer-facing improvements.

Another strategic focus is improving delivery speed and convenience. Leslie’s has indicated it will expand same-day delivery capabilities through third-party logistics partnerships, reflecting the continued shift toward faster, digitally driven retail experiences. As more consumers grow accustomed to quick fulfillment options, traditional specialty retailers have had to adapt or risk losing market share to online competitors.

The company is also closing an Illinois-based distribution center that primarily served its e-commerce business. While that may appear counterintuitive given the industry’s digital pivot, leadership has suggested the move is intended to better align fulfillment operations with current demand and improve efficiency across the network.

Looking Ahead

Leslie’s projects fiscal 2026 sales between $1.1 billion and $1.25 billion, signaling that recovery may take time. The guidance suggests leadership expects continued headwinds but believes restructuring efforts will create a more sustainable cost structure moving forward.

For employees and customers, the closures will have immediate local effects. Communities losing a Leslie’s store may need to rely more heavily on independent dealers or online suppliers for pool maintenance products. Meanwhile, impacted workers will face uncertainty, though some may have opportunities to transfer to nearby locations.

Within the broader pool and spa industry, Leslie’s announcement highlights the delicate balance retailers must maintain between brick-and-mortar presence and digital efficiency. Fixed operating costs remain high, and demand in this sector is often seasonal and weather-dependent. When combined with a slowdown in new pool construction and cautious consumer spending, retailers can quickly feel pressure on margins.

Still, Leslie’s remains a dominant player with a nationally recognized brand and an extensive customer base. The company’s ability to adapt its business model — reducing excess inventory, refining its store network and enhancing delivery capabilities — will likely determine how quickly it can regain financial footing.

While the coming year may be challenging, the restructuring signals a company willing to make difficult decisions rather than delay action. For industry observers, the next several quarters will be telling. If Leslie’s can successfully streamline operations and reconnect with its customer base, the closures may ultimately be remembered not as a sign of retreat, but as a turning point.

Written by Austin Pischner