Okay. Bad example. But the point stands. You could sell something/anything at trade +1%. You'd make a tiny bit but never enough to cover all your outgoings. You'd make a massive amount in turnover but never enough to turn a profit. Like Game.
Ffs, I can see I'm banging my head against a brick wall here, but I'll give it one last go.
This is not game, game don't sell at a loss, they don't sell at just over cost, they sell at relatively high cost compared to other sellers, and the turnover shows they have sales, so it's not through a lack of sales or selling the product too low, it's simply they have way too high costs!
Reducee those costs (sell majority of stores and cut down to one brand and one website) and the net income happens. Their gross profit is fine, it's the opex that's killing them.
