Negative Free Cash Flow GrowthA decline in free cash flow growth suggests rising capex, inventory build, or weaker cash conversion. If persistent, negative FCF growth constrains self-funded expansion, limits dividend or buyback capacity, and may force reliance on external funding, reducing strategic flexibility over months.
Margin Pressure (EBIT/EBITDA)Eroding EBIT/EBITDA margins point to rising input, labor, or SG&A pressures or weaker pricing power. Continued margin compression would lower return on capital, reduce funds for reinvestment, and heighten sensitivity to raw material or wage inflation common in footwear supply chains over the medium term.
Limited Scale & LiquidityVery low trading volume and a small organizational scale constrain negotiating leverage with suppliers and limit rapid geographic or channel expansion. Limited market liquidity can hinder sizable capital raises or institutional ownership, making financing and scaling more difficult over the next several months.