High LeverageA debt-to-equity ratio of 2.45 signals significant reliance on debt financing, increasing interest expense and refinancing risk. In adverse conditions this leverage can constrain investment, require higher cash generation for servicing, and limit strategic flexibility over the medium term.
Capex Pressure On FCFHigh capital spending depresses FCF conversion despite positive operating cash flow, creating ongoing liquidity pressure. Persistently elevated capex needs could hamper debt reduction or working capital funding and force external financing if cash generation slips.
Brick-and-Mortar ConcentrationHeavy dependence on physical stores exposes the company to fixed-cost risks (rent, staffing) and shifting consumer preferences toward online channels. Without a meaningful omnichannel mix, this structural exposure can pressure margins and growth consistency over the medium term.