Strong Operating Cash Flow And FCFConsistent operating cash flow exceeding net income and a recovering positive free cash flow trend indicate durable internal funding. This supports capex, store/DTC expansion, working capital needs and debt service without relying on external financing, improving long-term resiliency.
Improving Margins And Operating PerformanceRising gross and net margins alongside strong EBIT/EBITDA margins point to effective cost control and pricing power. Sustained margin expansion enhances free cash generation, funds marketing and product development, and supports durable profitability over multiple cycles.
Healthy Balance Sheet With Positive ROE TrendA strengthening equity base, manageable leverage and improving ROE provide financial flexibility for investment and shareholder returns. This balance-sheet health lowers refinancing risk and supports strategic initiatives without materially increasing financial vulnerability.