Key points of the thesis are:
1) The physical footprint of the company has evolved away from malls and will continue to do so
2) E-commerce is 20% of sales from 4% in 2015. It’s a strong growth driver and spreads the age-base of customers to adults without harming the in-store value proposition
3) 70% of e-commerce orders being filled in store locations and up selling throughout the transaction process create significant operating leverage with further opportunities to spread out fixed overhead and incremental labor costs
4) Growth opportunities from vending machines, wholesale distribution agreements, online gifting and subscription services, website/CRM upgrades, and new store locations are all capital light with 2022 CapEx including maintenance of exiting operations being at most 3.25% of sales