Payless ShoeSource ramps up $30.2mn in Q1 earnings

20 May '05

7 min read

during fiscal year 2005, the company intends to open approximately 30 new stores and close approximately 70, for a net reduction of approximately 40 stores. the company also intends to relocate approximately 70 stores.

payless shoesource opened its first test store in japan during the fourth quarter 2004. the company will continue to evaluate performance of this test store before considering any additional locations in japan. payless has curtailed any other expansion into new international markets to focus on its core business.

share repurchase
the company's capital allocation strategy is designed to fund both the necessary investment to improve the business and, when cash reserves are adequate, to use free cash flow to return more immediate value to shareowners.

during the first quarter 2005, the company repurchased 125,000 shares of common stock for approximately $2 million. under the indenture governing the company's 8.25% senior subordinated notes, the company may repurchase approximately an additional $42 million of common stock. this limit will continue to adjust quarterly based on the company's net earnings.

fiscal 2005 outlook
payless shoesource is committed to serving the interests of its shareowners by building long-term shareowner value. during 2005, the company will strive for continued improvements in operating results by:

- maintaining a singular focus on its core business, the payless shoesourareowner value. during 2005, the company will strive for continued improvements in operating results by:

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