High Financial LeverageA debt-to-equity ratio near 1.8 is structurally high for a retailer and increases interest and refinancing risk. Over the medium term this limits strategic flexibility, constrains investment capacity, and raises vulnerability to cost-of-capital shifts or weaker trading periods that reduce free cash flow available for deleveraging.
Negative Profitability MetricsPersistently negative net and operating margins point to structural operating inefficiencies or elevated costs relative to sales. Without sustained expense or assortment remediation, margin shortfalls will impede earnings recovery and prolong the need for external financing or asset sales to bridge profitability gaps.
Severe Free Cash Flow DeclineA near-100% decline in free cash flow growth is a material structural concern: it restricts capacity to fund capital expenditure, reduce debt, or sustain dividends. Even with some operating cash conversion, continued weak FCF undermines balance-sheet repair and heightens risk during prolonged margin recovery cycles.