Leslie’s Inc. Stock Rises on CEO Announcement

Leslie’s Inc. saw its stock rise over 2% in premarket trading on Tuesday following the announcement of Jason McDonell as the new Chief Executive Officer, effective September 9, 2024. The company stated that CEO Michael Egeck has departed.

The company reaffirmed its full-year fiscal 2024 guidance, maintaining confidence in its financial outlook.

Jason McDonell’s Background

McDonell brings nearly 30 years of experience in retail and consumer products to Leslie’s. He most recently served as Executive Vice President of Merchandising, Marketing, and e-Commerce at Advance Auto Parts (NYSE:AAP). His background also includes significant roles at PepsiCo (NASDAQ:PEP), where he led the Canadian Frito-Lay and Quaker businesses.

McDonell expressed excitement about joining Leslie’s at this pivotal time, emphasizing the company’s strong market position and omnichannel platform.

Interim Leadership

John Strain, Chairman of the Board, will serve as Interim CEO until McDonell assumes his new role. Strain praised McDonell’s leadership abilities and experience, stating that he is well-suited to lead Leslie’s into its next chapter.

Context of the Leadership Transition

This leadership transition follows Michael Egeck’s departure, who oversaw significant growth during the pandemic but faced challenges with financial performance in recent years due to weakened demand and macroeconomic issues, according to analysts at Telsey Advisory Group.

While McDonell lacks direct experience in the pool industry, Telsey noted that his extensive background in consumer and retail products is relevant to Leslie’s focus on omnichannel growth.

However, Telsey remains cautious on the stock, maintaining a Market Perform rating due to ongoing macroeconomic headwinds and soft near-term sales expectations. Despite these challenges, Leslie’s reaffirmation of its fiscal 2024 guidance has provided some optimism for investors.