Payless Profit Falls on Sandal Shortage
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Payless ShoeSource Inc. said that its fiscal first-quarter earnings fell 20% after the company underestimated demand for warm-weather footwear and that second-quarter profit may beat estimates as the largest U.S. shoe retailer stocks more sandals and open-toe shoes.
Net income in the period ended May 4 fell to $23.9 million, or $1.05 a share, from $29.7 million, or $1.30, a year earlier. Sales fell 3.9% to $738.2 million.
Chief Executive Steven J. Douglass said in a conference call that the company didn’t have enough sandals and other open-toe footwear in its stores in the first quarter, and that shortage is being corrected.
Shares of Topeka, Kan.-based Payless rose $1.30, or 2.3%, to $58.20 on the NYSE.
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