Declining Revenue And Persistent LossesSustained revenue decline and repeated net losses signal structural demand issues or execution gaps. Over months this erodes competitive position, limits reinvestment in stores and digital channels, and makes returning to sustained profitability more difficult without strategic change.
Negative Operating And Free Cash FlowOngoing negative operating and free cash flow indicate the core business is not generating sufficient cash to fund operations or investments. This structural cash shortfall forces reliance on external financing or asset sales, constraining growth and operational flexibility in the medium term.
High Leverage And Negative ROEElevated leverage and negative ROE increase financial risk, raise interest burdens and limit strategic options. Over months this reduces buffer against demand shocks, can trigger covenant pressure, and hampers the company's ability to invest in store upgrades or omni-channel initiatives.