Footwear retailer Payless ShoeSource Inc. said Wednesday its second-quarter profit increased 63 percent on higher sales, but the results missed Wall Street expectations, sending shares falling.

For the three months ending July 29, the Topeka-based company reported earnings of $32.5 million, or 48 cents per share, compared with $19.9 million, or 29 cents per share, during the same period a year ago.

Revenues during the quarter rose 1.8 percent to $706.4 million from $693.9 million.

Analysts surveyed by Thomson Financial had predicted earnings of 53 cents per share on revenues of $703.8 million.

Payless shares lost $2.94, or about 11.3 percent, to $23.10, in trading Wednesday on the New York Stock Exchange. The stock has traded in a 52-week range of $15.02 to $28.80.

Sales in stores open at least one year, considered a bellwether of retail health, rose 2.2 percent during the quarter.

For fiscal 2006, the company forecast depreciation and amortization expense of about $90 million to $95 million, and capital spending of $120 million.

Payless operates 4,584 stores in North and Central America, including one in Lawrence.