Payless Reports 4% October Comps Increase

Payless ShoeSource, Inc. reported that same-store sales increased 4.0% during the October reporting period, the four weeks ended October 29, 2005. Company sales totaled $212.5 million, a 1.1% increase from $210.1 million during fiscal October of last year.

Total sales for the first nine months of fiscal 2005 were $2.06 billion, compared with $2.05 billion during the similar period in fiscal 2004. Same- store sales increased 2.4% during the first nine months of the fiscal year.

Sales were as follows (unaudited):

                       OCTOBER SALES* (DOLLARS IN MILLIONS)
             Fiscal          Fiscal          Percent       Same-Store Sales***
             2005**          2004**         Increase       Percent Increase
            $212.5           $210.1           1.1%               4.0%


                    3RD QUARTER SALES* (DOLLARS IN MILLIONS)
             Fiscal          Fiscal          Percent       Same-Store Sales***
             2005**          2004**         Increase       Percent Increase
            $666.9           $661.4           0.8%               3.0%


                   YEAR-TO-DATE SALES* (DOLLARS IN BILLIONS)
             Fiscal          Fiscal          Percent       Same-Store Sales***
             2005**          2004**         Increase       Percent Increase
             $2.06            $2.05           0.3%               2.4%


    *   Sales from continuing operations.

    **  The fiscal year for operations in the company's Latin American region
        and Japan is based on a December 31 year-end.  Operations in the
        company's Latin American region (180 stores) and Japan are included in
        total company results on a one-month lag relative to results from
        other regions.

    *** Same-store sales represent sales of those stores in the United States,
        Canada, Puerto Rico, Guam and Saipan that were open during both
        periods.  Same-store-sales exclude stores in the company's Latin
        American region and Japan.

“We are pleased with our October results. Customers reacted positively to the company's fall merchandise during the month, as indicated by the solid sales performance,” said Matt Rubel, CEO and president.

The company remains committed to its goal of achieving low single-digit positive same-store sales growth through more consistent execution of its merchandise strategy to inspire fun, fashion possibilities for the family.

As of November 2nd, 23 stores remain closed in areas impacted by Hurricane Katrina, and 5 stores remain closed from the impact of Hurricane Rita. Store closings related to Hurricane Wilma peaked at approximately 120 stores; 32 of those stores remain closed.