Free Cash Flow GenerationSustained and rising free cash flow provides durable financing optionality: it supports debt repayment, shareholder returns, and reinvestment into stores, DTC and product development. Strong cash conversion cushions earnings volatility and funds strategic initiatives without relying on external capital.
Debt Reduction And Manageable LeverageMaterial year-on-year debt reduction and a mid‑range net debt/EBITDA ratio improve financial flexibility and lower interest burden. This durable improvement increases resilience to sales shocks, enables targeted investment in growth channels, and reduces refinancing risk over the medium term.
High Gross Margin StructureA persistently high gross margin reflects premium pricing, brand strength, and favorable product economics, particularly via DTC. This structural margin buffer can absorb cost inflation or markdowns, supporting operating leverage and making sustained profitability achievable if fixed costs are controlled.