Swimming Pool and Spa Retailers NAICS 459999

Sep 30, 2025 - Leslie’s Q3 Sales Fall Amid Seasonal Headwinds

• Large pool supply retailer Leslie’s reported a 12.2% year-over-year decline in Q3 FY2025 sales to $500.3 million, citing adverse weather and intensified pricing competition during its peak season. Net income fell to $21.7 million from $60.7 million, with adjusted EBITDA down 25.5% during the quarter. The company reduced labor hours to offset softer demand and reduced store traffic. It also initiated strategic reviews to stabilize operations. The challenging quarter reflects broader challenges in the pool supply industry, including seasonal volatility, weather dependency, and competitive pricing pressures. Leslie’s results highlight the need for operational agility and strategic investment to maintain profitability amid fluctuating consumer demand and macroeconomic headwinds.
• Single-family housing starts, which are a leading indicator of swimming pool construction and pool supplies demand, decreased in August 2025 year over year, according to National Association of Home Builders (NAHB) data. New home construction has been hampered by ongoing concerns around high mortgage rates, rising inventories, and supply-side issues driving up building materials costs. Per the report, the August reading of 1.31 million starts is the number of housing units builders would begin if development maintained this pace for the next 12 months. Within this number, single-family starts fell 7% to an 890,000 seasonally adjusted annual rate and were down 4.9% on a year-to-date basis. Regions showing growth for combined single-family and multi-family starts year to date were the Midwest (up 15%), Northeast (up 8.3%), and the West (up 0.1%). Meanwhile, there was a 3.5% decline in the South year to date.

• Consumer mood indicators in the US declined, signaling growing economic unease. The Consumer Confidence Index fell 1.3 points in August 2025, driven primarily by younger consumers under 35, while confidence among those over 55 improved. Despite the dip, overall confidence remained consistent with recent months. Separately, the University of Michigan’s Consumer Sentiment Index dropped to 55.4 in preliminary September data, down from 58.2 in August and 21% below September 2024 levels. Inflation expectations held steady, though concerns about pricing pressures, particularly from tariffs, persist. These indices reflect consumers’ outlook on personal finances and the broader economy, serving as key predictors of future spending behavior.
• Sales for the US swimming pool and spa retailers industry are projected to grow at a 2.25% CAGR from 2025 to 2029, slower than the expected growth of the overall economy, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and the government. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. The forecast said retail spending could soften with the growth of spending on consumer services. In addition, higher interest rates limit demand by increasing the costs of debt-financed spending, which affects residential construction and vehicle sales as well as credit card purchases. Another factor that may dampen consumer spending is higher tariffs on consumer goods. Lower inflation supports an increase of real disposable income by 2% in 2025 and 1.9% in 2026.