Sales And Inventory ChallengesQ3 missed expectations as revenues fell short on weak sales of seasonal merchandise in the latter part of the quarter, driving higher SG&A deleverage and creating an inventory overhang which will bleed into Q4 and fuel significant GM contraction.
Tariff RisksRecently announced tariffs pose a significant threat to all apparel companies and are the largest risk to shares.
Valuation ConcernsValuation at sub-2 times adjusted EBITDA estimate reflects deep uncertainty over the company’s future, including negative earnings and just $3 million in cash on the balance sheet.