Stocks of the day: Warnaco, Lululemon & Foot Locker

Foot Locker Chief Executive Ken Hicks is undergoing a major effort to expand sales of the firm. In a meeting with investors, Hicks said the company projects annual net income will increase 7% by 2016, compared with a growth rate of 5% last year.

According to Hicks, Foot Locker targets an increase in its sales per square foot to $500 in 2016, from $406 last year and $333 in 2009. Same-store sales are projected to rise in the mid-single-digit after rising 9.8% last year, the highest level in at least three years. The stock dropped by 0.66% on Tuesday.

Among the big losers of the FashionUnited Top 100 Index was Warnaco Group, that fell by over 2% less than a week after posting a 9.5% rise in its net revenues for 2011 (up to $2.5 billion). Nevertheless, Warnaco´s international net revenues increased 17% from the prior year, while direct-to-consumer net revenues increased 28%, including an increase of 4% in comparable store sales, from the prior year. Income per diluted share from continuing operations declined 6% to $3.01 compared to $3.19 in the prior year and income per diluted share from continuing operations on an adjusted, non-GAAP, basis increased 11% to $3.96 in fiscal 2011 compared to $3.57 in fiscal 2010 (both of which exclude restructuring expense, pension expense, certain tax-related items and other items. The Company purchased 4.3 million shares of its common stock for approximately $217.1 million pursuant to its share repurchase programs.

Elsewhere, Lululemon Athletica inc. (LULU) has broken out of a deep base established in early 2012 to skyrocket 41.8% in three months, as reported by Seeking Alpha.  Stifel Nicolaus recently raised its price target on Lululemon to $77 a share.