Very Low Net ProfitabilityAn almost negligible net margin implies limited capacity to retain earnings after costs. Persistently low profitability constrains reinvestment, heightens sensitivity to cost inflation or sales declines, and undermines durable shareholder returns over months.
Declining Free Cash FlowA sharp drop in FCF growth reduces liquidity available for inventory, store investments, or debt servicing. Over a medium-term horizon this weakens the company’s ability to fund omnichannel initiatives or absorb seasonal working capital swings without external financing.
Weak Returns On EquityROE near zero signals poor conversion of shareholder capital into profits. Structurally weak capital efficiency limits capacity to generate attractive investor returns and raises questions about long-term capital allocation and competitiveness in the apparel market.