Yeh expansion of stores is a bit of a catch 22. On the one hand you have a large increase in revenues, however earnings and free cash flow are depressed due to the cost of new store openings - this is just an interim effect though. On the other hand if you reduce the number of new stores, earnings should increase more due to less new store costs that are expensed. Free cash flow also increases significantly as capex is reduced, as is working capital investment.
There's probably also a case that more can go wrong if you increase store numbers dramatically, as we have seen last year
Turnaround, page-79
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