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Why the Fuss Over Payless?
By Ryan Fuhrmann, CFA
May 25, 2006

Payless ShoeSource's (NYSE: PSS) stock was up 18% yesterday, and I'm not exactly sure what all the hubbub was about.

As I mentioned back in March after covering Payless's fourth-quarter earnings, the stock has had a great run over the past couple of years, having more than doubled from a low of $9 in late 2004. You have to credit the new management team for its laser focus on cost-cutting initiatives to revitalize margins and earnings. Back in March, I pondered whether Payless had entered a new paradigm of consistent growth in its 4,600-store base, or whether this was a one-hit wonder that had resulted more from cost-cutting. Despite the impressive earnings reported today, I'm leaning toward the latter conclusion for now.....
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