Leslie’s Poolmart Blames Losses on Store Openings

Leslie’s Poolmart, which went public only a month ago, jolted Wall Street by posting a first-quarter loss of $2.73 million and by predicting difficult times in the current second quarter.

The Chatsworth-based provider of swimming pool supplies said the loss in the quarter ended March 31 compared with a year-earlier loss of $2.5 million. Its first-quarter sales climbed 15% to $10.3 million from $9 million. Leslie’s blamed the latest loss on costs related to its new-store openings; the company operates 91 outlets, up from 76 a year earlier.

But Leslie’s said its second-quarter earnings from operations “are also likely to be adversely impacted by lower than normal temperatures experienced to date,” which is keeping a lid on pool use and the demand for supplies. That prompted some analysts to cut their estimates of Leslie’s second-quarter earnings, which in turn triggered a sharp drop in Leslie’s stock.

After the results were announced last Wednesday, the stock plunged $2.75 a share, to $8.25, in over-the-counter trading. The stock--which went public April 18 at $11 a share, thus raising $19.5 million for the company--closed Monday at $8 a share.