High LeverageA debt-to-equity ratio near 1.8 is a persistent constraint on flexibility for a retailer with volatile margins. Elevated leverage increases interest and refinancing risk, restricts capital allocation to store and digital investments, and reduces the firm’s ability to absorb shocks over the coming 2–6 months.
Negative ProfitabilityConsistent negative margins and loss-making operating metrics (net margin -7.02%, negative EBIT/EBITDA) reflect structural operating inefficiencies. Losses erode retained capital and hinder reinvestment, making sustainable recovery dependent on meaningful margin improvement or cost restructuring.
Severe Free Cash Flow DeclineA near-100% drop in free-cash-flow growth signals a material deterioration in internal funding capacity. Coupled with high leverage, this raises persistent liquidity and refinancing concerns, limits ability to fund capex or pay partners, and increases reliance on external financing if performance does not rebound.