Payless to Close, Sell Stores; Profit Falls

Payless ShoeSource Inc., the biggest U.S. shoe retailer, plans to close or sell an additional 292 stores after second-quarter earnings declined and sales fell for the 10th time in the last three years.

Payless already planned to shut or sell about 411 stores, including 181 of its Parade and 230 of its namesake locations.

The Topeka, Kan.-based company said net income fell 29% to $3.7 million, or 5 cents a share, from $5.2 million, or 8 cents. Sales dropped less than 1% to $727.9 million.

Shares of Payless, which has about 5,000 stores, rose 41 cents to $11.37 on the New York Stock Exchange.