Declining Revenue TrendAn ~18.7% revenue decline year-over-year signals weakening demand or market share loss. Persistent top-line contraction pressures fixed-cost absorption in a merchandise business and reduces scale benefits in sourcing and logistics, making profitability recovery harder.
Negative Operating And Free Cash FlowConsistent negative operating and free cash flows indicate difficulty converting sales into cash, critical for inventory-led commerce. Poor cash generation limits reinvestment in inventory, marketing, and systems, and increases reliance on financing to sustain operations over months.
Persistent Net Losses And Negative MarginsNegative EBIT and net margins despite stable gross profits point to structural cost pressures—high SG&A or fulfillment expenses. Ongoing losses erode equity and restrict capacity to fund strategic initiatives, prolonging the timeline to durable profitability.