Narrow product focus on legwear products, mainly socks Susceptible to slowing retail environment Limited channel diversity with significant exposure to mass market retailers. High debt leverage and tight covenants Positive cash flow generation. S&P Global Ratings' outlook on Renfro Corp. is negative reflecting the risks that the company will be unable to revitalize its sales and profit growth because of the weak retail environment, declining demand for its products, or a loss of a major customer. We could lower the rating if we believe sales and EBITDA will continue to decline and the company could breach its financial covenants as they become more restrictive in the upcoming quarters. In addition, we could lower the ratings if the company's liquidity erodes
