Multi-year Revenue DeclineConsecutive revenue declines in 2025–2026 signal weakening top-line momentum. Persistent downturns in apparel sales can erode scale economics, pressure margins and limit the company's ability to invest in product, marketing or channel expansion over the medium term without structural fixes.
Sharp EBIT Compression In 2026A near-halving of EBIT year-on-year indicates margin stress and operating leverage loss. Sustained compression reduces internal funding for growth and increases sensitivity to cost inflation or sales volatility, weakening durable profitability and strategic optionality.
Deteriorating Cash Flow And Rising DebtThe sharp drop in operating cash flow and a slight negative free cash flow in 2026, alongside a recent increase in total debt, reduces financial flexibility. If weak cash conversion persists, the company may face constraints on capex, inventory funding or dividend sustainability.