Revenue Decline & Negative MarginsOngoing top-line contraction combined with negative operating and net margins signals structural demand or competitive positioning issues. Without a durable reversal in revenue trends, fixed-cost absorption and margin recovery will remain constrained, limiting sustainable profitability improvement.
Negative Equity & High LeverageNegative equity and elevated leverage materially weaken financial resilience and strategic optionality. This capital structure raises refinancing and covenant risk, increases cost of capital, and likely necessitates recapitalization or sustained cash generation to restore solvency and support long-term investments.
Negative Operating And Free Cash FlowPersistent negative OCF and FCF undermine the company's ability to fund capex, store consolidation, and product investments internally. Reliance on external financing or covenant amendments increases execution risk and can limit strategic flexibility until consistent positive cash generation is restored.