08:30 AM EDT, 05/16/2024 (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 lower our 12-month price target by $1 to $4, based on 16.0x our FY 25 (Mar.) EPS estimate and well below competitors Nike (NKE 92 ***) and Lululemon (LULU 347 *****), reflecting our view of significant underperformance across all operating metrics. We lower our FY 25 EPS estimate by $0.25 to $0.25 and initiate our FY 26 EPS estimate at $0.35. UAA posts normalized Q4 EPS of $0.11 vs. $0.18, $0.03 above consensus estimates on revenues of $1.33B vs. $1.40B and $5M above estimates. By channel in Q4, wholesale revenues declined 7% Y/Y while direct-to-consumer revenue was flat. Q4 adjusted gross margin expanded 170 bps Y/Y to 45.0% due to lower product and freight costs. Inventory was down 19% Y/Y to $958M. UAA announced a new restructuring plan and gave FY 25 guidance well below expectations. UAA expects revenues to be down low double-digits for the full year with adjusted EPS of $0.18 to $0.21. We remain negative on shares and continue to wait for UAA to prove they can turn around operating efficiencies.