Leslies Inc (LESL)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	23,545	36,741	88,856	156,158	187,493	208,117	193,901	186,641	187,978	163,128
Revenue (ttm)	US$ in thousands	1,378,163	1,403,018	1,453,814	1,527,384	1,535,663	1,531,880	1,467,427	1,389,785	1,351,089	1,299,337
Pretax margin		1.71%	2.62%	6.11%	10.22%	12.21%	13.59%	13.21%	13.43%	13.91%	12.55%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $23,545K ÷ $1,378,163K
= 1.71%

The pretax margin of Leslies Inc has been fluctuating over the past 10 quarters. The trend shows a general decline from 13.91% in Dec 2021 to 1.71% in Dec 2023. This indicates a decreasing profitability before accounting for taxes. The company experienced a notable peak in pretax margin at 13.59% in Sep 2022, followed by a consistent decrease thereafter. Management should closely monitor the factors affecting profitability to ensure sustainable performance and consider implementing strategies to improve the pretax margin in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

Leslies Inc

LESL

1.71%

Sally Beauty Holdings Inc