Topeka ? Payless ShoeSource Inc. said Thursday its profit fell 29 percent in the latest quarter, hurt by a restructuring charge.

The Topeka-based shoe retailer reported net income of $3.7 million, or 5 cents a share, for the fiscal second quarter ended July 31. That’s down from the prior year’s $5.2 million, or 8 cents a share.

Payless said the latest results included a noncash restructuring charge of $16.9 million after taxes, or 25 cents a share, related to the impairment of certain assets and store closings.

Excluding that charge, the results beat the average analyst estimate of earnings of 26 cents a share, according to a survey by Thomson First Call.

Revenue came in at $727.9 million, which was down 0.5 percent from the previous year’s $731.5 million. Analysts had expected revenue of $757 million.

During the second quarter, Payless said it decided to implement strategic initiatives in a bid to raise long-term shareholder value and increase profitability.

Actions include the previously announced decision to sell or dispose of all 181 Parade stores, the sale or disposal of all 32 Payless ShoeSource stores in Peru and Chile, and the closing of about 260 Payless ShoeSource stores, in addition to other previously scheduled store closures.

Payless, which operates 5,072 stores, currently estimates the costs for lease terminations, severance and other exit costs to be between $40 million and $60 million. The firm said it intended to complete the initiatives by the end of fiscal 2004.

For the first six months of the year, the company reported net income of $17.5 million, or 26 cents a share, including the impairment charges for the strategic initiatives in the second quarter. In the previous year, first-half net income was $19.3 million, or 28 cents a share. First-half sales rose 1.4 percent to $1.45 billion from $1.43 billion.

Payless shares closed at $11.37, up 41 cents, or 3.7 percent, Thursday on the New York Stock Exchange.