Earnings Volatility (EPS Fall)A roughly -38% EPS decline signals earnings sensitivity to cost, pricing, or mix shifts. Persistent EPS volatility reduces predictability of profits and complicates long-term capital allocation and investor confidence, which can hinder strategic planning in a competitive garment market.
Growing Liabilities RiskAn observed uptick in total liabilities raises leverage and liquidity concerns if the trend continues. For manufacturers, higher payables or borrowings can compress margins during demand slowdowns and elevate refinancing exposure, making active liability management essential for sustained stability.
Inconsistent CapEx Impacting FCFFluctuating capex has produced uneven free cash flow, constraining predictable funding for strategic investments and maintenance of production capacity. In apparel manufacturing, stable capex planning is necessary to preserve efficiency and steady cash generation across production cycles.