Negative Profitability And ROEDespite margin improvements, the company remains loss-making at the net and EBIT level and is destroying equity capital. Negative ROE signals structural inability to generate shareholder returns, constraining capacity to self-fund growth or absorb shocks without sustained profit recovery.
High Financial LeverageA debt-to-equity ratio near 1.0 denotes meaningful leverage that elevates interest and covenant risk. Even with cleaned covenants, high leverage reduces financial flexibility, limits strategic optionality, and raises the chance that further cash stress could force dilutive financing or operational cutbacks.
U.S. Revenue & Channel DisruptionA deliberate purchasing pause and the shift from wholesale to marketplace caused a material U.S. revenue decline. Recovery depends on effective inventory reinvestment and channel execution; failure to restore U.S. momentum would leave concentration risk and impair medium-term revenue diversification.