09:35 AM EDT, 05/30/2024 (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 maintain our 12-month target of $18, based on 10.3x our FY 25 (Jan.) EPS estimate and in line with the company's five-year average forward P/E multiple. We keep our FY 25 and FY 26 EPS estimates of $1.75 and $2.00, respectively. FL posted normalized Q1 EPS of $0.22 vs. $0.70, $0.10 above consensus estimates on revenues of $1.88B vs. $1.93B and $3M below estimates. The company reaffirmed its EPS and sales guidance, even though it raised its gross margin expectations. FL sees EPS of $1.60 at the midpoint, well below our FY 25 estimate, with sales flat at the midpoint and in line with our estimate. Revenues declined 2.8% Y/Y in Q1 with comparable sales declining 1.8%. Q1 gross margin compressed 120 bps Y/Y to 28.8%, but management said markdowns moderated sequentially from Q4. FL closed 37 stores in Q1 and opened four. Shares of FL popped up ~14% pre-market, which we believe is an opportunity to sell shares. In our view, FL still faces multiple long-term headwinds and is experiencing a significant slowdown.