Shoe Pavilion, Inc. reported total net sales decreased 4.2% to $20.7 million for the third quarter ended October 2, 2004, from net sales of $21.6 million for the same period in 2003. Net sales for the nine months ended October 2, 2004 were $61.0 million, a 0.6 % decrease from net sales of $61.3 million for the nine months ended September 27, 2003.
Comparable store net sales decreased 6.3% for the third quarter ended October 2, 2004 from the same period last year and increased 0.1% for the nine months ended October 2, 2004 from the same period last year.
Mr. Dmitry Beinus, Chairman and CEO of the Company, stated that, “the decline in comparable store sales during the third quarter was due in part to the reduction in advertising in the third quarter of 2004 as compared to the same period in 2003.” In the third quarter ended October 2, 2004, advertising as a percentage of net sales was approximately 6.0% compared to 10.9% for the same period last year, a reduction of approximately $1.0 million. Mr. Beinus stated further that, “although comparable store net sales increased 4.7% in the third quarter of 2003, this increase was below the Company's expectations given the amount of money we committed to advertising during the third quarter of 2003. Based upon these results in the third quarter of 2003 the Company reduced its advertising in the third quarter of 2004 as it continues to focus on profitability.”
During the quarter ended October 2, 2004 the Company opened three stores in Arizona and closed two stores in which the leases had expired bringing the total number of stores the Company operates to 84. The Company plans to open two new stores in the fourth quarter of 2004 and five to ten new stores in 2005.
