Shares of Payless ShoeSource Inc. continued to climb Thursday, extending a surge that began with a better-then-expected earnings report and news of a planned acquisition.

Shares for the Topeka-based retailer climbed as high as $26.49 before closing Thursday at $26.31 on the New York Stock Exchange, up $1.66 for the day.

Payless shares jumped more than 17 percent Wednesday after the company reported a 19 percent increase in its first-quarter profits. The company also said Wednesday that it would be acquiring the American Eagle brand for footwear and accessories from Jimlar Corp.

Payless has a store in Lawrence, and dozens of officials working at the company’s world headquarters in Topeka are Lawrence residents.