Shoes Are Off

Payless ShoeSource Inc. (Topeka, Kan.) reported a $17.2 million net loss for its fourth quarter 2003 ending Jan. 31, 2004. For the year, the shoe retailer had a $0.1 million net loss.

Quarterly sales were down 0.9 percent and same-store sales decreased 1 percent. For the fiscal year 2003, sales slipped 3.3 percent and same-store sales decreased 3.9 percent.

The 5042-unit international retailer said it remains bullish on expansion, especially overseas. In the fourth quarter 2003, it opened 84 new stores and closed 92. For the fiscal year, it increased the chain by 50 net new stores. The company said it intends to open 65-75 net new stores in 2004, including 15-20 net new stores in international markets.

During the fourth quarter, the company opened seven net new stores in the Central American and Caribbean region and two new stores in South America. It now operates 150 stores in Central America and the Caribbean (and believes this region represents up to a 200-store opportunity); 57 stores in South America (Ecuador, Peru and Chile), and said it continues to focus on achieving its performance standards in all countries in this region; and 291 stores in Canada, a net increase of 16 stores during fiscal 2003.

It also recently announced a joint venture agreement to test the Payless ShoeSource concept in Japan.