New York City based largest family footwear retailer Payless ShoeSource Inc reported that for the second quarter of fiscal 2005, which ended July 30, 2005, diluted earnings per share were $0.29, compared with $0.05 during the second quarter of fiscal 2004. The company recorded net earnings of $19.9 million during the second quarter 2005 compared with $3.8 million during the second quarter 2004.
Second quarter 2005 results include pre-tax charges of approximately $8 million for expenses related to the management transition. After taxes these charges were approximately $5 million or $0.08 per diluted share. In addition, in the second quarter 2005 the company incurred a loss from discontinued operations, net of income taxes and minority interest, of $1.9 million, or $0.03 per diluted share.
Review of second quarter results from Continuing Operations
Sales during the second quarter 2005 totaled $693.9 million, a 0.2 percent decrease from $695.6 million during the second quarter 2004. Same-store sales increased 1.5 percent during the second quarter 2005. In total, average unit retail increased by 6.3 percent and unit sales decreased by 6.4 percent during the second quarter 2005, compared with the same period last year.
Average footwear unit retail increased by 5.4 percent and footwear unit sales decreased by 5.2 percent relative to the same period last year. The decrease in footwear unit sales reflects primarily the lower store count, as wellas a slight decrease in unit sales per store.