LESL — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-13

• Represents the tax effect of the total adjustments based on our combined U.S. federal and state statutory tax rates. Amounts are reported in income tax expense (benefit) in our consolidated statements of operations. The prior period amounts have been corrected for an immaterial error reported for th…

• The prior period comparative reconciliation has been updated to conform to the current period presentation.

• Sales were $184.7 million for the three months ended April 4, 2026 compared to $177.1 million in the prior year period, an increase of $7.6 million, or 4.3%. The increase was driven by a strength in our retail business and favorability driven by a week calendar shift in comparing to the prior year. …

• Sales were $331.9 million for the six months ended April 4, 2026, compared to $352.4 million in the prior year period, a decrease of $20.5 million, or 5.8%. The decrease was primarily driven by lower sales as a result of the closure of underperforming stores during the period, headwinds in our first…

• Gross profit for the three months ended April 4, 2026 was $53.3 million compared to $43.9 million in the prior year period, representing an increase of $9.4 million, or 21.4%. Gross margin increased to 28.9% compared to 24.8% in the prior year period, an increase of approximately 410 basis points. T…

Text removed vs the prior filing · source: 10-Q · 2026-02-18

• Represents a non-cash change in valuation allowance for deferred taxes. This item is reported in income tax expense (benefit) in our consolidated statements of operations.

• Represents the tax effect of the total adjustments based on our combined U.S. federal and state statutory tax rates. Amounts are reported in income tax expense in our consolidated statements of operations. The prior period amount has been corrected for an immaterial error reported for the period end…

• Amount reported for the three months ended December 28, 2024 reflects a correction of an immaterial error in the “tax effects of these adjustments” amount reported in the first quarter of 2025.

• Sales were $147.1 million for the three months ended January 3, 2026 compared to $175.2 million in the prior year period, a decrease of $28.1 million, or 16.0%. The change was driven by a combination of factors, including estimated one time impacts of: $10.0 million associated with a 1-week shift in…

• Gross profit for the three months ended January 3, 2026 was $27.1 million compared to $47.7 million in the prior year period, representing a decrease of $20.6 million, or 43.3%. Gross margin decreased to 18.4% compared to 27.2% in the prior year period, a decrease of 880 basis points. A negative imp…

Text added vs the prior filing · source: 10-Q · 2026-05-13

• As previously disclosed in Part II, Item 9A, “Controls and Procedures” of our Annual Report on Form 10-K for the fiscal years ended October 4, 2025, September 28, 2024, and September 30, 2023, we identified material weaknesses in the Company’s internal control over financial reporting related to the…

• With respect to inventory controls, the following remediation activities have taken place as of April 4, 2026:

• examined and enhanced the procedures regarding the completeness and accuracy of data utilized in calculating the cutoff of inventory in-transit from vendors, and

• examined and enhanced the precision of review of capitalized costs into inventory.

• We are further enhancing the execution of existing inventory controls as follows:

Text removed vs the prior filing · source: 10-Q · 2026-02-18

• As previously disclosed in Part II, Item 9A, “Controls and Procedures” of our Annual Report on Form 10-K for the fiscal years ended October 4, 2025, September 28, 2024, and September 30, 2023, we are in the process of implementing a plan to address these material weaknesses in internal control over …

• We are enhancing the execution of existing inventory controls as follows:

• The actions we are taking are subject to continued senior management review as well as audit committee oversight. We intend to remediate these material weaknesses as soon as possible, and we believe the measures described above will help remediate the material weakness and strengthen our internal co…

Text added vs the prior filing · source: 10-Q · 2026-05-13

• Our common stock may be delisted from The Nasdaq Global Select Market if we are unable to regain and maintain compliance with Nasdaq's continued listing standards.

• As previously disclosed, on February 11, 2026, we received notification from Nasdaq that our common stock is subject to potential delisting from The Nasdaq Global Select Market because the Company is not in compliance with Nasdaq Listing Rule 5450(b)(3)(C) because, for a period of 30 consecutive bus…

• If we do not regain and maintain compliance with the Nasdaq standards, our common stock may be delisted from Nasdaq. Any delisting of our common stock would likely adversely affect the market liquidity and market price of our common stock and our ability to obtain financing for the continuation of o…

Text removed vs the prior filing · source: 10-Q · 2026-02-18

• The following disclosure is responsive to Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard of Form 8-K. On February 11, 2026, the Company received a notification (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”…

• The Notice has no immediate impact on the Company’s listing on The Nasdaq Global Select Market. In accordance with Nasdaq Listing Rule 5810(c)(3)(D), the Company has a period of 180 calendar days from the date of the Notice, or until August 10, 2026 (the “Compliance Date”), to regain compliance with…

• The Notice also states that if, at any time before the Compliance Date, the Company’s MVPHS closes at $15,000,000 or more for a minimum of 10 consecutive business days, Nasdaq will provide written notification to the Company that it has regained compliance, and the matter will be closed.

• In the event the Company does not regain compliance by the Compliance Date, the Company will receive written notification from Nasdaq that the Company’s common stock is subject to delisting. At that time, the Company may appeal the delisting determination to a Nasdaq hearings panel.

• The Company intends to actively monitor its MVPHS and may, if appropriate, consider available options to regain compliance. However, there can be no assurance that the Company will be able to regain compliance with the MVPHS requirement, that the Company will be able to maintain the listing of its c…