Topeka Payless ShoeSource, the nation's largest shoe retailer, will close 104 of its more than 4,900 stores in a restructuring that will produce pre-tax annual savings of $25 million to $30 million.
The plan announced Friday includes an anticipated fourth-quarter charge of $70 million before taxes and $43 million after taxes, amounting to $1.94 per share. The cash portion of that charge is estimated at $43 million.
The fourth-quarter charge will include the previously announced estimate of $18 million to $20 million cash before taxes for restructuring the corporate office and closing division offices in Atlanta, Baltimore, Chicago and Dallas.
The 104 stores, called underperforming by Payless, include 67 operating under the Parade name and 37 Payless ShoeSource stores.
Despite the closings, the company expects a net increase for the year of 75 to 80 stores.
Payless said it expects same-store sales figures for the fourth quarter to be off by the mid-single digits. With the one-time charge for the quarter, the company said it expects a loss of between $1.54 and $1.59 a share, and for the full fiscal year it expects to earn between $1.91 and $1.96 a share, compared to $5.01 a share in 2000.
Without the charge, the company said it expects earnings of 35 to 40 cents a share in the fourth quarter and $3.86 to $3.91 a share for the year.