Collective Brands Airwalk

Dec 2 (Reuters) - Footwear retailer Collective Brands Inc (PSS.N) posted a third-quarter profit that beat market expectations, driven by strong operating margins and a successful back-to-school season, sending its shares up 7 percent in extended trade.

Collective Brands, which is the holding company of Payless ShoeSource, Stride Rite and Collective Licensing International, said it saw strong children's results at Payless and in its boot category.

The company's Payless ShoeSource chain offers fashionable, private and branded-label footwear and accessory products for men, women, and children, while Stride Rite sells children's footwear.

The company saw net income attributable to Collective Brands drop 22 percent to $36.9 million, or 57 cents a share, from $47.5 million, or 74 cents a share, a year earlier.

Excluding litigation and severance charges, it earned 61 cents a share.

Revenue at Collective Brands, which bought shoe maker Stride Rite last year, rose marginally to $867 million.

Analysts were looking for earnings of 49 cents a share, on revenue of $847.6 million, according to Thomson Reuters I/B/E/S.

Shares of the Topeka, Kansas-based company, which have tripled in the last one year, closed at $20.17 Wednesday 2 December on the New York Stock Exchange. For the alerts, double-click (Reporting by Shradhha Sharma in Bangalore; Editing by Ratul Ray Chaudhuri) (([email protected]; within U.S. +646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: [email protected]))