Leslie's, Inc. Segments Disclosure
Note 16—Segment Reporting
We manage our business activities on a consolidated basis and operate as a operating segment. We derive our revenue in the United States by providing pool related goods and services to our customers through a variety of channels. The accounting policies of our operating segment are the same as those that are described in Note 2 – Summary of Significant Accounting Policies.
Our chief operating decision maker (“CODM”) is our , who reviews financial information presented on a consolidated basis. The CODM uses consolidated net income to assess financial performance and allocate resources. The CODM does not review assets in evaluating the results of our operating segment, and therefore such information is not presented.
The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM (in thousands):
|
|
Year Ended |
|
|||||||||
|
|
October 4, 2025 |
|
|
September 28, 2024 |
|
|
September 30, 2023 |
|
|||
Sales |
|
$ |
1,241,915 |
|
|
$ |
1,330,121 |
|
|
$ |
1,451,209 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Cost of merchandise and services sold(1) |
|
|
802,268 |
|
|
|
853,331 |
|
|
|
902,986 |
|
Store labor and fringe |
|
|
125,854 |
|
|
|
122,937 |
|
|
|
124,645 |
|
Merchant fees |
|
|
49,295 |
|
|
|
52,916 |
|
|
|
58,956 |
|
Direct store expense |
|
|
41,993 |
|
|
|
40,531 |
|
|
|
39,811 |
|
Marketing |
|
|
33,537 |
|
|
|
36,429 |
|
|
|
37,987 |
|
Information technology |
|
|
31,764 |
|
|
|
30,337 |
|
|
|
29,991 |
|
Other segment expense(2) |
|
|
143,233 |
|
|
|
136,523 |
|
|
|
154,654 |
|
Impairment |
|
|
183,826 |
|
|
|
— |
|
|
|
— |
|
Interest expense |
|
|
62,919 |
|
|
|
70,395 |
|
|
|
65,438 |
|
Income tax expense |
|
|
4,196 |
|
|
|
10,101 |
|
|
|
9,499 |
|
Segment net (loss) income |
|
$ |
(236,970 |
) |
|
$ |
(23,379 |
) |
|
$ |
27,242 |
|
(1) Included within cost of merchandise and services sold and other segment expenses is depreciation and amortization expense of $19.3 million, $18.1 million, and $17.8 million in fiscal years 2025, 2024, and 2023, respectively, as described in Note 2, Summary of Significant Accounting Policies.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.