Shoe Pavilion, Inc. reported net income of $24,000 for the fourteen-week fourth quarter ended January 3, 2004, including a before tax charge of approximately $1.0 million for costs associated with the settlement of a wage and hour lawsuit, compared to a net loss of $354,000 or ($.05) per share for thirteen-week fourth quarter ended December 28, 2002.
For the 53-week fiscal year ended January 3, 2004, the Company reported a net loss of $2.7 million or ($.40) per share compared to net income of $147,000, or $.02 per share for the 52-week fiscal year ended December 28, 2002.
The Company also announced that in December 2003 it had entered into a settlement of a wage and hour lawsuit filed in Los Angeles County Superior Court. Under the terms of the agreement, which must be approved by the court, the Company would pay store managers a stipulated cash settlement based upon the number of weeks worked for the period from April 1, 1998 through December 31, 2003. During the fourth quarter ended January 3, 2004 the Company recorded a reserve of approximately $1.0 million to cover the costs associated with the lawsuit settlement.
Net sales increased 7.6% to $22.2 million for the fourteen-week fourth quarter ended January 3, 2004, from net sales of $20.7million for the thirteen-week fourth quarter ended December 28, 2002. Comparable store net sales for the thirteen-weeks ended December 27, 2003 decreased 3.2%.
Net sales for the 53-week fiscal year ended January 3, 2004 were $83.6 million compared to net sales of $83.8 million for the 52-week fiscal year ended December 28, 2002. Comparable store net sales for the 52-week period ended December 27, 2003 decreased 3.9%.
During the quarter ended January 3, 2004 the Company closed one store in which the lease had expired and opened two stores bringing the total number of stores the Company operates to 85.
