Persistent Net LossesOngoing and growing net losses erode retained earnings and limit reinvestment capacity. Persistent unprofitability forces dependence on external funding, constrains strategic initiatives, and raises execution risk on any multi-quarter recovery plan.
Negative Free Cash Flow And Financing RelianceConsistent negative free cash flow and dependence on financing undermine liquidity resilience. Over time this increases exposure to credit cost swings and capital-raising execution risk, potentially forcing cutbacks in investment or store operations if financing tightens.
Historical Negative Equity And High LiabilitiesA history of negative equity and elevated liabilities signals prior capital erosion and creditor concentration. This structural weakness can limit access to capital markets, raise borrowing costs, and hamper strategic expansion until equity is rebuilt sustainably.