High Gross MarginsSustained gross margins above 50% indicate durable product-level profitability and cost control across design, manufacturing and retail channels. This margin buffer supports reinvestment in collections, marketing and omnichannel growth, and helps absorb input cost inflation over the medium term.
Improving Leverage TrendAn improving debt-to-equity trend signals that management is making progress on de-levering, which enhances financial flexibility. Reduced leverage improves access to capital and lowers interest burdens, supporting investment or weathering retail cycles without immediate capital raises.
Positive Operating Cash FlowConsistent and growing operating cash generation underpins liquidity and funds working capital, store operations, and e-commerce infrastructure. Reliable operating cash flow reduces reliance on external financing and allows the company to sustain dividends, capex and strategic initiatives longer term.