Shares of Leslie's (NASDAQ: LESL), a retailer focused on pool supplies, fell dramatically at the open on Feb. 3, dropping as much as 12% in morning trading. The big news, however, came out on Feb. 2, when the company reported earnings after the close of trading. Investors were clearly less than pleased with the fiscal first-quarter 2023 update.

Leslie's revenue advanced 5.6% year over year in the fiscal first quarter of 2023, hitting a record $195.1 million. That figure was soundly above analyst expectations and the year-ago figure.

This would seemingly be good news, but much of that increase was driven by acquisitions and new store openings. Same-store sales, which measures sales at locations that have been open for at least a year, fell 4%. Management blamed bad weather, but weak same-store sales are normally viewed in a negative light by investors.

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Source Fool.com