Moderate Operating MarginsDespite high gross margins, mid-single-digit EBIT and low-double-digit EBITDA margins imply limited operating leverage and relatively high SG&A or operating costs. Persistently moderate operating margins constrain free cash flow upside and profitability expansion without efficiency gains.
Cash Flow VolatilityWhile 2025 showed strong free cash flow and OCF conversion >1, prior year fluctuations highlight inconsistency in cash conversion. Variable cash flows make multi-period planning for capex, store rollouts and inventory funding less predictable, raising execution risk.
Limited Public DisclosureA lack of recent earnings call detail or material corporate events reduces transparency on strategy, capital allocation and risk management. Over months this limited disclosure hinders investor visibility into management's execution and long-term strategic priorities.