Loss-making Operations And Negative MarginsSustained net losses and negative operating profit materially reduce retained earnings and constrain reinvestment. If losses persist, they will erode the equity cushion, limit strategic initiatives, and force cost cutting or external financing, harming long-term competitiveness.
Weak And Negative Free Cash Flow (TTM)Negative free cash flow in the trailing period signals structural working-capital or profitability issues. Persistent FCF deficits elevate refinancing and liquidity risk, reduce ability to fund inventory and store operations, and make sustained recovery dependent on external capital or margin improvement.
Rising Leverage (debt-to-equity ~1.13) And Deteriorating TrendDebt exceeding equity increases fixed obligations and interest exposure, reducing financial flexibility. Rising leverage during a loss-making period amplifies refinancing and covenant risks and limits the company's ability to invest in growth or inventory, worsening medium-term recovery prospects.