Footwear retailer Payless ShoeSource Inc reported that for the first quarter of fiscal 2006, which ended April 29th 2006, diluted earnings per share increased to $0.53 from $0.45 during the first quarter of fiscal 2005.
The company recorded net earnings of $36.0 million during the first quarter 2006 compared with $30.2 million during the first quarter 2005. Same-store sales increased 0.4 percent during the first quarter 2006.
Company sales during the first quarter 2006 totaled $694.8 million, a (0.1) percent decrease from $695.2 million during the first quarter 2005. Average unit retail for footwear increased by 11.2 percent, and footwear unit sales decreased by 8.6 percent relative to the same period last year.
Gross margin was 36.8 percent of sales in the first quarter 2006 versus 35.1 percent in the first quarter 2005. The improvement resulted primarily from favorable initial mark-on relative to last year.
Selling, general and administrative expenses were 28.7 percent of sales in the first quarter 2006 versus 28.3 percent in the first quarter 2005. The increase was driven primarily by higher employee relocation and recruiting costs and an increase in advertising expenses, partially offset by a decrease in employee incentive costs relative to last year.
"Our strategy is beginning to gain traction, and we are pleased with our customer's response to our new product offerings," said Matthew Rubel, CEO and President of Payless ShoeSource Inc.
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