Leslie's, Inc.

State · Number ofLocations

Alabama · 8

Arizona · 97

Arkansas · 3

California · 172

Colorado · 4

Connecticut · 16

Delaware · 4

Florida · 92

Georgia · 34

Illinois · 10

Indiana · 11

Iowa · 1

Kansas · 6

Kentucky · 6

Louisiana · 17

Maryland · 11

Massachusetts · 11

Michigan · 6

Mississippi · 4

Missouri · 13

Nebraska · 2

Nevada · 29

New Hampshire · 3

New Jersey · 34

New Mexico · 3

New York · 36

North Carolina · 14

Ohio · 17

Oklahoma · 22

Oregon · 8

Pennsylvania · 46

Rhode Island · 2

South Carolina · 9

Tennessee · 13

Texas · 223

Utah · 3

Virginia · 18

Washington · 12

Wisconsin · 2

Total Locations · 1,022

Our corporate offices are located in Phoenix, Arizona. The 92,669 square foot office building has a current lease term through February 28, 2027, with our ability to exercise two five-year renewal options.

• Adverse developments in the housing industry could slow the install of new pools and spas and thus impact demand for our products.
• The demand for pool chemicals may be affected by consumer attitudes towards products for environmental or safety reasons.
• Our results of operations may fluctuate from quarter to quarter for many reasons, including cyclicality and seasonality.
• Adverse developments affecting the financial services industry, such as actual events or concerns involving prevailing interest rates, liquidity, defaults, or non-performance by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and our financial condition and results of operations.
• We maintain our cash at financial institutions in balances that may exceed federally insured limits.
• We are susceptible to adverse weather conditions.
• Technology and Privacy Related Risks
• If our online systems do not function effectively, our operating results could be adversely affected.
• Any limitation or restriction on our ability to sell via online platforms could harm our profitability.
• A significant disturbance or breach of our technological infrastructure could adversely affect our financial condition and results of operations.
• Improper activities by third parties and other events or developments may result in future intrusions into or compromise of our networks, payment card terminals, or other payment systems.
• Risks Related to Our Business Strategy
• We may acquire other companies or technologies, which could fail to result in a commercialized products and otherwise disrupt our business.
• Changing consumer preferences and demographic shifts could impact the demand for pool and spa care products sold via our retail networks.
• Our operating results will be harmed if we are unable to effectively manage and sustain our future growth or scale our operations.
• If we are unable to streamline our operations effectively, our business, financial condition and results of operations may be adversely affected.
• Our aspirations and disclosures related to sustainability matters expose us to risks that could adversely affect our reputation and performance.
• Risks Related to the Manufacturing, Processing, and Supply of Our Products
• Our business includes the packaging and storage of chemicals, and an accident related to these chemicals could subject us to liability and increased costs.
• Our product assortment may be subject to increased regulatory oversight, increasing our cost of goods sold and ourcompetitive pricing power.
• Product supply disruptions may have an adverse effect on our profitability and operating results.
• The cost of raw materials could increase our cost of goods sold and cause our results of operations and financial condition to suffer.
• Risks Related to Commercialization of Our Products
• The commercial success of our planned or future products is not guaranteed.
• We may implement a product recall or voluntary market withdrawal, which could significantly increase our costs, damage our reputation, and disrupt our business.
• If we do not manage product inventory effectively and efficiently, it could adversely affect profitability.
• If we do not effectively manage our distribution centers, it could adversely affect our business and financial condition.
• If we do not continue to obtain favorable purchase terms with manufacturers, it could adversely affect our operating results.
• Product quality, warranty claims, or safety concerns could impact our sales and expose us to litigation.
• Risks Related to Government Regulation
• The nature of our business subjects us to compliance with employment, environmental, health, transportation, safety, and other governmental regulations.
• Risks Related to Intellectual Property Matters
• If we are unable to adequately protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce or defend our rights.
• If we infringe on or misappropriate the proprietary rights of others, we may be liable for damages.
• Risks Related to Our Indebtedness
• Our substantial indebtedness could adversely affect our financial condition and our ability to operate our business.
• Our ability to generate sufficient cash depends on numerous factors beyond our control, and we may be unable to generate sufficient cash flow to service our debt obligations.
• Restrictive covenants in the agreements governing our Credit Facilities may restrict our ability to pursue our business strategies, and failure to comply with these restrictions could result in acceleration of our debt obligations.
• Incurrence of substantially more debt could further exacerbate the risks associated with our substantial leverage.
• Risks Related to Ownership of Our Common Stock
• Our stock price may be volatile, resulting in substantial losses for investors.
• An active trading market for our common stock may not be sustained.
• Future sales of common stock by existing stockholders could cause our stock price to decline.
• Transactions engaged in by our principal stockholders, our officers or directors involving our common stock may have an adverse effect on the price of our stock.
• We do not intend to pay dividends for the foreseeable future.
• Anti-takeover provisions in our charter documents and under Delaware law could limit certain stockholder actions.
• Certain provisions of our seventh amended and restated certificate of incorporation may have the effect of discouraging lawsuits against our directors and officers.
• We will continue to incur increased costs as a result of being a public company.
• Our inability to remediate material weaknesses, our identification of any additional weaknesses, or our inability to achieve and maintain effective disclosure controls and procedures and internal control over financial reporting in a timely manner could adversely affect our results of operations, our stock price and investor confidence in us.
• Our success depends on our ability to maintain or increase comparable sales, and if we are unable to achieve comparable sales growth, our profitability and performance could be materially adversely impacted.
• We may not be able to successfully manage our inventory to match consumer demand, which could have a material adverse effect on our business, financial condition, and results of operations.
• Loss of key members of management or failure to attract, develop, and retain highly qualified personnel could adversely affect our business.
• We are subject to, and may in the future be subject to, legal or other proceedings that could have a material adverse effect on us.
• Disruptions from natural or man-made disasters or extreme weather, public health and safety issues, geopolitical events and security issues, labor or trade disputes, macroeconomic crises, and similar events could have a material adverse effect on our business.
• We operate in a competitive and fragmented industry, subject to regional variations, and where we face competition from onlineplatforms, mass merchants, and certain of our suppliers.
• The demand for our swimming pool and spa related products and services can be adversely affected by unfavorable economic conditions.
• Our results of operations can fluctuate from quarter to quarter for many reasons, including seasonality.
• If the technology-based systems that give our consumers the ability to shop with us online do not function effectively, our operating results, as well as our ability to grow our e-commerce business globally, could be materially adversely affected.
• A significant portion of our digital sales take place through online marketplaces and online retailers and any limitation or restriction, temporarily or otherwise, to sell on these online platforms could harm our profitability and results of operation.
• We rely on information technology systems to support our business operations. A significant disturbance or breach of our technological infrastructure could adversely affect our financial condition and results of operations. Additionally, failure to maintain the security of confidential information could damage our reputation and expose us to litigation.
• Improper activities by third parties, exploitation of encryption technology, new data-hacking tools and discoveries, and other events or developments may result in future intrusions into or compromise of our networks, payment card terminals, or other payment systems.
• We may acquire other companies or technologies, which could fail to result in a commercial product or sales, divert our management’s attention, result in additional dilution to our stockholders, and otherwise disrupt our business.
• Changing consumer preferences and demographic shifts could materially impact the demand for pool and spa care products sold via our retail networks.
• Our business includes the packaging and storage of chemicals and an accident related to these chemicals could subject us to liability and increased costs.
• Even if we are able to attain significant market acceptance of our planned or future products or services, the commercial success of our planned or future products is not guaranteed.
• If we do not manage product inventory in an effective and efficient manner, it could adversely affect profitability.
• Any significant interruption to the operations of our distribution centers could affect our ability to distribute our products in a timely manner, which could adversely impact our business and financial condition.
• We depend on a network of suppliers to source our products, including our own branded products. Product quality, warranty claims, or safety concerns could negatively impact our sales and expose us to litigation.