Shoe Pavilion, Inc. reported net sales for the first quarter of $27.3 million, an increase of 17.2% compared to $23.3 million for the same period last year. Comparable store net sales decreased 1.1% for the quarter.
Net income was $198,000, or 3 cents per diluted share, for the first quarter ended April 1, 2006 compared to net income of $406,000 or 6 cents per diluted share, for the first quarter ended April 2, 2005.
Gross profit for the first quarter of 2006 increased 15.7% to $9.3 million or 34.0% of net sales compared to $8.0 million or 34.4% of net sales for the prior year.
Selling, general and administrative expense for the first quarter of 2006 were $8.8 million or 32.1% of net sales compared to $7.2 million or 31.0% of net sales for the prior year.
The company opened five new stores and closed two stores during the first quarter of 2006 as part of its strategic plan that focuses on closing smaller stores and opening larger stores in power retail centers.
Dmitry Beinus, Chairman and CEO, stated, “Our earnings per share for the 1st quarter are within the range of our EPS expectations and the earnings guidance which we provided on March 9, 2006. In the 1st quarter we absorbed approximately $500,000, or $0.04 per share in one time expenses related to the opening of stores in our new Dallas Market and incremental audit fees associated with our year-end audit. Our new unit growth plans we previously communicated for this year are on track and we are pleased with the performance of the new stores opened this quarter.”
