They rely on a few large distributors such as Target, with whom they may not have enough bargain power. Their brand may not have much moat in my opinion. More analysis is called for.
Their debt level is high. If they have 400M earnings each year, over the next five years they will have paid down 2B debt and brought the debt back to a comfortable level. By that time, if market is willing to reward a PE of 13, that will render a market cap of 5B, compared to today's 2.5B. So in 5 years stock price doubles, but no dividends, as all the earnings must be dispatched to pay debt. This results in 12% gain per year in next 5 years.
