The Topeka, KS company, which has 4,584 stores in the United States and Latin America, is apparently heading in that direction. Earnings jumped to $32.5 million, or 48 cents a share, on sales of $706.4 million during the second quarter, but profits fell short of the 53 cents per share predicted by analysts, sending Payless stock tumbling. Those results, announced Wednesday in a conference call with investors and analysts, were up from last year when Payless recorded a second-quarter profit of $19.9 million, or 29 cents a share, on sales of $693.9 million, including a 3 cent per share loss from discontinued operations.

Yet despite this year's second quarter earnings shortfall, Rubel said the combination of low single-digit same-store sales growth, gross margin expansion and prudent expense control were working to drive earning improvements.

Gross margins for the quarter were up 0.6% to 34.5% from 33.9% while revenue grew 2%, to $706.4 million, beating analysts' expectations by nearly $3 million. Sales at stores open at least a year rose 2.2% for the quarter based on strong consumer demand across the board.