Large Net Losses & Negative ROEDeep net losses and a negative ROE (~-16.6%) indicate the business currently destroys shareholder capital, which is a structural concern. Persistent losses will erode equity, reduce strategic optionality, and likely force costly corrective actions or external financing if profitability is not restored sustainably.
Operating Profitability Not Yet AchievedDespite revenue recovery, operating results remain negative and margins deeply impaired, implying the core business model struggles to convert sales into profit. Structural cost, pricing, or mix issues could persist, limiting durable margin expansion and constraining internal funding for growth or brand investment.
Historically Volatile Cash FlowMulti-year cash flow volatility, including significant outflows in prior years, undermines predictability of free cash for capex, inventory and marketing. Intermittent cash generation raises risk of future liquidity stress or dilutive financing needs, complicating long-term planning and execution of strategic initiatives.