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Leslie’s Shares Fall Nearly 12% Premarket After Earnings Miss, Guidance Cut

By Connor Hart

Shares of Leslie’s Inc. are down almost 12% in premarket trading after the company cut its full-year outlook and delivered lower-than-expected earnings in its third quarter.

Elevated distribution costs and supply-chain snarls caused headwinds in the company’s most-recent quarter, Chief Executive Mike Egeck said.

The Phoenix-based consumer provider of pool and spa care services said it now expects full-year sales to be between $1.55 billion and $1.57 billion, down from its previous view of between $1.58 billion and $1.61 billion.

Leslie’s lowered its net income projection to between $150 million and $160 million, down from a prior view of between $178 million and $190 million, and the company lowered its adjusted per-share earnings projection to between 90 cents and 96 cents from a prior projection of between $1.02 and $1.10.

The company said its net income rose to $123 million, or 67 cents a share, from $118.8 million, or 61 cents a share, in the previous year.

Stripping out one-time costs, adjusted per-share earnings were 68 cents. Analysts polled by FactSet forecast adjusted earnings of 74 cents a share.

For the quarter ended July 2, sales rose almost 13% to $673.6 million, below analysts’ estimates of $691.1 million, according to FactSet.

Shares of the company closed Thursday at $15.61 before falling to $13.80 in premarket trading Friday. The company’s share price is down about 34% both for the year and in the past 52 weeks.

Write to Connor Hart at connor.hart@wsj.com

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