UPDATE 1-Collective Brands Q1 profit tops estimates

* Q1 EPS $0.59 vs est $0.46

* Sales fell 7.5 pct to $862.9 mln

* Same-store sales down 4.8 pct

* Sees capex of $85 mln in 2009

* Shares up 3 pct in trading after the bell

June 3 (Reuters) - Footwear retailer Collective Brands Inc (PSS.N) posted a first-quarter profit that topped market estimates as lower expenses offset a drop in sales. Shares of the Topeka, Kansas-based company were up 3 percent at $16.40 in trading after the bell. They closed at $15.89 Wednesday on the New York Stock Exchange.

"During the first quarter, we increased our market share, we lowered our operating cost structure, and we generated stronger cash flows," Chief Executive Matthew Rubel said in a statement.

Collective Brands, which is the holding company of Payless ShoeSource, Stride Rite and Collective Licensing International, earned $38.0 million, or 59 cents a share, for the quarter ended May 2, compared with $19.7 million, or 30 cents a share, a year earlier.

Sales fell 7.5 percent to $862.9 million.

Analysts were expecting earnings of 46 cents a share, before items, on revenue of $884 million, according to Reuters Estimates.

Selling, general and administrative expenses fell 6 percent to $249.3 million in the quarter.

For related alerts, double click [ID:nWNAB6344] (Reporting by Renju Jose in Bangalore; Editing by Deepak Kannan)