08:00 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $8 to $64, based on 16.0x our 2024 EPS estimate, which is between the company's 3- and 5-year average forward P/E multiple. We raise our 2024 EPS estimate by $0.25 to $4.00 and maintain our 2025 EPS estimate of $4.00. SKX posts normalized Q1 EPS of $1.33 vs. $1.02, $0.17 above consensus estimates on revenues of $2.25B vs. $2.00B and $51M above estimates. By channel, wholesale revenues grew 9.8% Y/Y and direct-to-consumer revenues grew 17.3%. Q1 gross margin increased 360 bps Y/Y to 52.5% due to lower freight and higher average selling prices. Inventory declined 10.8% Y/Y to $1.36B. SKX opened 147 stores in the quarter and closed 112, with the largest net increase coming from its international segment. By region, EMEA sales increased 17%, Asia increased 16%, and the Americas increased 8%. International sales now make up 65% of total sales. We remain neutral on shares due to what we believe is an overreliance on licensing and franchise stores.