Shoe Pavilion, Inc. announced a net loss of $231,000 or ($0.03) per share, for the second quarter ended June 28, 2003 compared to net income of $528,000 or $0.08 per share, for the second quarter of 2002.
The net loss for the six months ended June 28, 2003 was $1.5 million or ($0.23) per share, compared to net income of $605,000 or $0.09 per share, for the same period in 2002.
Net sales were $21.2 million for the second quarter ended June 28, 2003, compared to net sales of $22.7 million for the same period in 2002, a 6.9% decrease. Net sales from the Company's retail stores increased 3.2% to $21.2 million for the second quarter compared to $20.5 million for the same period last year. There were no sales from the Gordmans licensed shoe departments during the second quarter compared to $2.2 million for the same period in 2002.
Net sales for the six months ended June 28, 2003 were $39.7 million, a 10.0% decrease from net sales of $44.2 million for the same period last year. Net sales from the Company's retail stores increased 1.4% to $39.7 million for the six months ended June 28, 2003 compared to $39.2 million for the same period in 2002. There were no sales from the Gordmans licensed shoe departments during the six months ended June 28, 2003 compared to $5.0 million for the same period in 2002.
Comparable store net sales decreased 7.6% and 8.3%, respectively, for the second quarter and six months ended June 28, 2003 from the same periods last year.
As previously announced, on June 14, 2002 the license agreement with Gordmans department stores was terminated and the Company discontinued operating all 40 of its licensed shoe departments in Gordmans department stores.
During the quarter ended June 28, 2003 the Company opened two new stores and closed two stores in which the leases had expired. Since the end of the quarter the Company closed one store bringing the total number of stores the Company operates to 86.
Shoe Pavilion, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share
amounts and number of stores)
Thirteen weeks Twenty-six weeks
ended ended
------------------ ------------------
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $21,162 $22,740 $39,745 $44,155
Cost of sales and related
occupancy expenses 15,030 14,834 29,376 29,641
-------- -------- -------- --------
Gross profit 6,132 7,906 10,369 14,514
Selling, general and
administrative expenses 6,440 7,086 12,814 13,540
-------- -------- -------- --------
Income (loss) from
operations (308) 820 (2,445) 974
Interest expense (76) (27) (136) (62)
Other income - 64 - 70
-------- -------- -------- --------
Income (loss) before taxes (384) 857 (2,581) 982
Income tax provision
(benefit) (153) 329 (1,032) 377
-------- -------- -------- --------
Net income (loss) ($231) $528 ($1,549) $605
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Earnings (loss) per share:
Basic $(0.03) $0.08 $(0.23) $0.09
Diluted $(0.03) $0.08 $(0.23) $0.09
