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LESLIE'S POOLMART ANNOUNCES SEPTEMBER SALES, PROBABLE THIRD-QUARTER EARNINGS SHORTFALL, AND COST IMPROVEMENT PROGRAM

 CHATSWORTH, Calif., Oct. 4 /PRNewswire/ -- Leslie's Poolmart (NASDAQ: LESL) today announced preliminary sales results for the month of September 1993.
 The company's preliminary figures indicate that September sales increased 6.6 percent to $9,989,000 compared with $9,369,000 in September 1992. Sales in the third quarter of 1993 grew 24.7 percent to $39,876,000 from $31,978,000 the prior year. Nine-month, year-to-date sales were larger by 25.8 percent to $106,445,000, compared with $84,621,000 in 1992.
 Based on the preliminary sales report, comparable store sales increased 0.7 percent in September, 12.0 percent in the third quarter, and 11.5 percent on a year-to-date basis. September is the first month in which those stores from the August 1992 acquisition of Sandy's Pool Supply are included in the calculations of comparable store sales.
 The company also announced that it anticipates third quarter earnings to fall short of current analysts' expectations. These lower- than-expected earnings are due to this season's more aggressive pricing strategy and to expenses which exceeded plan levels. The additional expenses were primarily due to non-recurring costs associated with implementation of a new point-of-sale system.
 According to Brian P. McDermott, president and chief executive officer of Leslie's Poolmart, "Leslie's has achieved very impressive sales results in 1993 but has struggled with its new point-of-sale system all season. While sales have clearly benefited from our aggressive chemical pricing, we are beginning to see the dual impact of P.O.S.-related expenses and lower gross margins from our everyday low pricing structure on key products. Effective Oct. 1, we have put into place a significant cost-reduction program that is intended to improve fourth quarter results and which could substantially offset the earnings shortfall experienced in the third quarter."
 Founded in 1963, Leslie's Poolmart is the country's leading specialty retailer of swimming pool supplies and related products. The company currently markets its products through 158 retail stores in 26 states and a nationwide mail-order catalog.
 -0- 10/4/93
 /CONTACT: Brian P. McDermott, president and CEO, or Robert D. Olsen, CFO, 818-993-4212; or Eugene G. Heller of Silverman Heller Associates, 310-208-2550/
 (LESL)


CO: Leslie's Poolmart ST: California IN: REA SU: ERP

MF-LS -- LA015 -- 8103 10/04/93 06:31 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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