Payless April Same-Store Sales Down 4.8%

Payless ShoeSource, Inc. reported that same-store sales decreased 4.8 percent during the April reporting period, the four weeks ended May 3, 2003.

Company sales totaled $251.5 million, a 5.2 percent decrease from $265.4 million during fiscal April of last year.

Total sales for the first quarter of fiscal 2003 were $697.7 million, a 5.5 percent decrease from $738.2 million during the similar period in fiscal 2002.

Same-store sales decreased 6.2 percent during the first three months of the fiscal year.

Sales were as follows:

APRIL SALES (DOLLARS IN MILLIONS)

     Fiscal           Fiscal            Percent             Same-Store Sales*
     2003              2002            Increase/                  Percent
                                       (Decrease)         Increase/(Decrease)
     $251.5           $265.4             (5.2)%                   (4.8)%

                    FIRST QUARTER SALES (DOLLARS IN MILLIONS)

     Fiscal           Fiscal            Percent             Same-Store Sales*
     2003              2002            Increase/                  Percent
                                       (Decrease)         Increase/(Decrease)
     $697.7           $738.2             (5.5)%                   (6.2)%

*Same-store sales represent sales of those stores open during both periods.

“Our sales performance in April was below expectations. Sales of our spring seasonal merchandise were negatively impacted by unfavorable weather patterns throughout many parts of the country, particularly during the Easter selling period. Sales were also affected by continuing weakness in the overall retail environment, reflecting consumer sentiment,” said Steven J. Douglass, Chairman and Chief Executive Officer of Payless.

Due to the lower than anticipated sales, the company now expects diluted earnings per share for the first quarter 2003 in the range of $0.20 – $0.22. Previous guidance was for low-single digit negative same store sales and diluted earnings per share of $0.25 – $0.30. Diluted earnings per share were $0.35 in the first quarter 2002.