High Gross And Operating MarginsSustained wide gross margins and healthy operating/net margins indicate durable product-level profitability and pricing power. Such margins provide buffer against input cost inflation, fund marketing and product development, and support free cash flow generation over successive quarters.
Extremely Low Financial LeverageAn exceptionally low debt load and consistently strong ROE materially reduce financial risk and interest burden, enabling flexible capital allocation. This balance-sheet strength supports investments, dividend capacity and resilience to cyclical retail slowdowns without levering the business.
Direct-to-Consumer E‑commerce ModelOwning the digital sales channel preserves full retail margins, direct customer data and control over pricing, inventory and UX. This scalable DTC model supports higher unit economics, repeat purchase programs and targeted marketing that can compound customer lifetime value over time.