8-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

February 2, 2006
Date of Report (Date of earliest event reported)

PAYLESS SHOESOURCE, INC.

(Exact Name of Registrant as Specified in its Charter)

DELAWARE

(State or Other Jurisdiction of Incorporation)

1-14770	43-1813160
(Commission File Number)	(IRS Employer Identification No.)

3231 Southeast Sixth Avenue
Topeka, Kansas 66607-2207

(Address of Principal Executive Office) (Zip Code)

(785) 233-5171

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01          Regulation FD Disclosure.

          On February 2, 2006, Payless ShoeSource, Inc., a Delaware corporation, issued a press release announcing its sales for the fiscal month of January, which ended January 28, 2006.  The full text of the press release and the transcript of the monthly sales message are attached hereto as Exhibits 99.1 and 99.2 respectively, and incorporated by reference herein.

Item 9.01          Financial Statements and Exhibits.

(d)	Exhibits.
EXHIBIT #	DESCRIPTION
99.1	Press Release dated February 2, 2006
99.2	Transcript of January monthly sales message

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	PAYLESS SHOESOURCE, INC.
Date: February 2, 2006	By:	/s/ Ullrich E. Porzig
		Ullrich E. Porzig
		Senior Vice President
		Chief Financial Officer and Treasurer

EXHIBIT INDEX

EXHIBIT #	DESCRIPTION
99.1	Press Release dated February 2, 2006
99.2	Transcript of January monthly sales message

EX-99.1

Exhibit 99.1

For Immediate Release Contact:  Ron Cooperman     (785) 295-6026

PAYLESS SHOESOURCE REPORTS JANUARY SAME-STORE SALES

          TOPEKA, Kan., February 2^nd, 2006 -- Payless ShoeSource, Inc. (NYSE:PSS) today reported that same-store sales increased 0.8 percent during the January reporting period, the four weeks ended January 28, 2006.  All data in this press release relate to continuing operations.

          Company sales totaled $139.3 million, a 1.6 percent increase from $137.2 million during fiscal January of last year.

          For the fourth quarter, same-store sales increased by 2.3 percent.  Total sales for the fourth quarter 2005 were $611.3 million, compared with $607.2 million in the fourth quarter 2004.  Total sales for fiscal 2005 were $2.67 billion, compared with $2.66 billion during fiscal 2004, and same-store sales increased 2.4 percent during the year.

          Sales were as follows (unaudited):

JANUARY SALES* (DOLLARS IN MILLIONS)
Fiscal 2005**	Fiscal 2004**		Percent Increase			Same-Store Sales*** Percent Increase
$     139.3	$	137.2		1.6	%		0.8	%
4TH QUARTER SALES* (DOLLARS IN MILLIONS)
Fiscal 2005**	Fiscal 2004**		Percent Increase			Same-Store Sales*** Percent Increase
$     611.3	$	607.2		0.7	%		2.3	%
YEAR-TO-DATE SALES* (DOLLARS IN BILLIONS)
Fiscal 2005**	Fiscal 2004**		Percent Increase			Same-Store Sales*** Percent Increase
$       2.67	$	2.66		0.4%			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 (178 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.

          In January, the company had strong results in women’s and men’s dress and casual shoes, women’s and children’s athletic shoes, and girl’s shoes.  Weaker categories included women’s and men’s boots. 

          The receipt of new spring merchandise, combined with less aged product, is contributing to a clean seasonal transition.  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.

          At the end of fiscal 2005, 22 stores remained closed from the impact of hurricanes Katrina, Rita and Wilma.

          Payless ShoeSource, Inc. is the largest specialty family footwear retailer in the Western Hemisphere.  As of the end of fiscal January 2005, the Company operated a total of 4,605 stores, which includes the 22 stores that remain closed due to hurricanes.  Payless stores offer quality family footwear and accessories at affordable prices.  In addition, customers can buy shoes over the Internet through Payless.com^R, at www.payless.com.

This release contains forward-looking statements relating to anticipated financial performance.  A variety of known and unknown risks and uncertainties and other factors could cause actual results to differ materially from the anticipated results or expectations.  Please refer to the company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2005 and the Form 10-Q for the period ending October 29, 2005, for more information on risk factors that could cause actual results to differ. The company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

###

For additional information regarding January 2005 sales performance, please call the Payless ShoeSource Investor Relations phone line at 1-800-626-3204.  Select submenu 1, option 2.  Or, visit our Investor Relations website at www.paylessinfo.com.

EX-99.2

Exhibit 99.2

Script for January Sales Comments -- Thursday, February 2nd, 2006

The following are comments expanding on same-store sales results for Payless ShoeSource, Inc. during the January reporting period for fiscal year 2005, the four weeks ended January 28th, 2006.

Payless ShoeSource reported that corporate same-store sales increased 0.8 percent during January of fiscal 2005 versus the same period in fiscal 2004.  All data in this recording relate to continuing operations.

Total company sales in January were $139.3 million dollars, a 1.6 percent increase from total sales of $137.2 million in January 2004.

For the fourth quarter, same-store sales increased by 2.3 percent.  Total sales for the fourth quarter 2005 were $611.3 million, compared with $607.2 million in the fourth quarter 2004. 

Total sales for fiscal 2005 were $2.67 billion, compared with $2.66 billion during fiscal 2004, and same-store sales increased 2.4 percent during the year.

By region, our business was strongest in the West, followed by the South, the Northeast and the Northcentral. 

The company had strong results for the month in women’s and men’s dress and casual shoes, women’s and children’s athletic shoes, and girl’s shoes.  Weaker categories included women’s and men’s boots. 

The receipt of new spring merchandise, combined with less aged product, is contributing to a clean seasonal transition.  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.

At the end of fiscal 2005, 22 stores remained closed from the impact of hurricanes Katrina, Rita and Wilma.

We were operating 4,605 total stores at the end of fiscal 2005, including 147 stores in the Central American region, 31 stores in South America and 312 stores in Canada. The 22 stores that remain closed due to the impact of the hurricanes are also included in our total store count.

This recording contains forward-looking statements relating to anticipated financial performance.  A variety of known and unknown risks and uncertainties and other factors could cause actual results to differ materially from the anticipated results or expectations.  Please refer to the company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2005, and the Form 10-Q for the period ending October 29, 2005, for more information on risk factors that could cause actual results to differ. The company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Thank you for your interest in Payless.

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