High Financial LeverageA debt-to-equity ratio of 2.45 signals significant reliance on debt financing, raising fixed interest obligations and reducing financial flexibility. In a downturn or against margin pressure, high leverage increases refinancing and liquidity risk, constraining long-term strategic options and investment capacity.
CapEx-Driven Low FCF ConversionElevated capital spending depresses free-cash-flow conversion of accounting profits, meaning earnings are less available for debt reduction or reinvestment. Persistently high capex needs can force external funding, magnifying leverage risks and reducing buffer for operational variability over upcoming quarters.
Heavy Dependence On Brick-and-Mortar SalesPrimary reliance on physical stores concentrates revenue exposure to footfall, lease costs and local demand cycles. Limited disclosed e-commerce presence reduces omnichannel resilience, making the business more vulnerable to structural shifts toward online retail and variable consumer traffic over the medium term.