Low Leverage / Strong Balance SheetA low debt-to-equity profile and high equity ratio give the company durable financial flexibility. Over the next 2-6 months this reduces refinancing and solvency risk, supports working capital and capex funding, and provides buffer to execute restructuring or product investments without needing urgent external financing.
Revenue Rebound With Stable Gross MarginsA recent revenue rebound combined with stable gross margins suggests underlying product demand resilience and consistent production economics. If maintained, this structural stability supports margin recovery and gives management scope to focus on cost efficiency and higher‑margin branded assortments over the medium term.
Improving Operating Cash Flow And EBITDAImproving OCF and EBITDA indicate operational improvements that are more durable than one-off gains. Sustained improvement can enhance liquidity, reduce reliance on reserves, and enable investments in inventory and channel support, improving the company's ability to convert sales into free cash over coming quarters.