Net income rose 13% to $21.1 million against $18.7million for the period ended Jul. 31. PSS posted a 50 b.p. improvement in Q2operating margin to 4.4% and 140 b.p. gain in gross margins to 34.4% onessentially flat revenues of $841.3 million versus $836.3 million. Q2comparable store sales declined 5.0% as stronger results in wholesale andinternational were dampened by weak results in U.S. Payless stores. Q2 endinventory was up 7.7% to $497.5 million y-o-y on a greater mix of higher-pricedproducts and accelerated growth in PLG brands.

Payless U.S. suffered a 72% drop in Q2 operatingprofit to $6.8 million on a 7% drop ... Log in to view full article.