The elephant in the room is the debt load of the business, still a legacy of the IPO and the previous ownership structure, as well as large investments, which have been made to grow the business.
The company posted adjusted EBITDA of $82 million for the year of 2016, which indicates that the company is still very leveraged.
As such the financial concerns continue to cause some overhang, as the company is not really taking measures to improve cash flow generation, by reducing the growth of the store base for instance.
I remain somewhat optimistic about the earnings power and opportunities of the business, as margins are good and online competition is less of a factor compared to other parts of the retail sector.
The real issue is the debt load and the attitude of management to leverage this position.