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Shoe Pavilion announces Q1 2007 results

09 May '07

3 min read

Shoe Pavilion Inc announced financial results for the first quarter ended March 31, 2007.

Net sales increased 32.6%, or $8.9 million, to $36.2 million from $27.3 million for the first quarter ended April 1, 2006. Comparable store net sales for the first quarter increased 7.8% from the same period in fiscal 2006. Sales from our new stores and relocated stores contributed $10.0 million in the first quarter ended March 31, 2007.

Gross profit was 28.8% in the first quarter compared to 34.0% in the same period last year. The decrease primarily reflects higher occupancy costs due to the rapid rollout of new stores during the past year and a reduction in selling margins. Selling, general and administrative expenses increased to 33.3% of net sales compared to 32.1% in the year-ago period primarily reflecting de-leveraging from the lower than expected net sales.

A net loss of $1.2 million was incurred in the first quarter, or $0.13 per diluted share, compared to net income of $206,000, or $0.03 per diluted share, for the first quarter of 2006.

Dmitry Beinus, Chairman and CEO of the Company, stated: "Our performance in the first quarter was below our original expectations as a result of outside factors which affected the 24 stores we opened in 2006. Most of the stores opened in 2006 were in new shopping centers where we have experienced slower than expected traffic due to ongoing construction in the centers as well as it taking longer than planned for other retailers to open stores at those centers."

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