What's Going On With Lady Foot Locker?

Canaccord reiterated its Buy rating on Foot Locker, Inc. (NYSE: FL) Tuesday and maintained a $70 price target following its analyst day.

Analysts Camilo Lyon and Pallav Saini thought that the trends favoring casual athletic footwear and apparel would continue.

The analysts believed "the combination of its remodel programs, apparel initiatives, women's recapture, and European growth strategies will lend themselves to the company likely beating its newly issued 2020 targets ahead of schedule."

According to the analyst note, the company expected that by 2020 it would achieve $10 billion in sales, a gross margin range of 33.5-34 percent and EBIT margin of 12.5 percent.

"We believe new CEO Dick Johnson will take the reins from [former CEO Ken Hicks] and progress down the same path that has been carved over the past five years. This path will be marked by methodical analysis, measured investments, and consistent execution – a recipe that we believe will translate into continued share price appreciation," according to Lyon.

What About Lady Foot Locker?

Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, also commented on the company and highlighted that Lady Foot Locker would "disappear" within a few years as locations had already been cut from 567 stores in 2004 to 213 by the end of 2014.

"The reasons for Lady Foot Locker's struggles over the years were summed up nicely by [CEO Dick Johnson], who noted there was an ‘awful lot of testosterone' injected into the chain's merchandising strategies," according to Sozzi.

The company will not be ignoring female customers, however. Sozzi noted that the SIX:02 stand-alone store concept will be expanded and will sell yoga and training apparel with "more intimate customers service."

Shares of Foot Locker recently traded at $61.42, up 1.1 percent.