“Our goal is to continually raise the earnings bar higher, and we did not quite succeed in achieving that in the first quarter,” Johnson said. He also pointed to a delay in tax refunds as one reason why profits did not exceed expectations. In case recent sales trends continue for Foot Locker, Johnson says the brand is ready to carry out “Plan B.”
“Plan B is primarily focused on controlling expenses and inventory so that we can deliver the mid-single-digit EPS increase for the full year, excluding the 53rd week that we mentioned in our pre-announcement, even if top line growth is more modest than what we originally planned,” he said. Though they are just weeks into the second quarter, executives have noticed that sales are trending lower than planned.