Declining Revenue TrendA meaningful recent revenue decline signals weakening demand or market share loss. Reduced top-line scale increases per-unit fixed costs and limits ability to invest in product development or distribution, making margin recovery and competitive positioning harder over several quarters.
High Financial LeverageElevated debt-to-equity exposes the company to interest and refinancing risks, limiting strategic options. In a capital-intensive, cyclical apparel industry, high leverage constrains investment, increases vulnerability to demand shocks and can pressure liquidity during downturns.
Weak Operating ProfitabilityNegative EBIT shows core operations are losing money, indicating structural margin weakness. Persistent operating losses erode cash buffers and make sustainable debt servicing and reinvestment difficult unless operational efficiencies or pricing improvements are achieved.