Shoe Pavilion Q2 net income rises 43% on revenue growth
11 Aug '06
2 min read
Footwear maker Shoe Pavilion Inc announced financial results for the second quarter ended July 1, 2006.
Net sales increased 26% to $31.4 million in the second quarter from $24.9 million in the prior year period. Comparable store sales increased 3.9%.
Net income for the second quarter increased 43% to $1,007,000, or $0.10 per diluted share, versus net income of $704,000, or $0.10 per diluted share, in the prior year period.
Second quarter 2006 net income includes an after-tax charge of $103,000, or $0.01 per diluted share, attributable to the defense and settlement of a lawsuit. Excluding this expense in the second quarter of 2006, adjusted net income for the second quarter of 2006 would have increased 58% to $1,110,000, or $0.11 per diluted share, compared to the second quarter of 2005.
Dmitry Beinus, President and CEO, stated, "Our net sales and adjusted net income were in line with our expectations. We are pleased to have successfully continued our store rollout plans with the opening of four new stores during the quarter."
During the quarter, we opened new stores in Bellevue, Washington, and Sacramento, Huntington Beach and Montebello, California.
Gross profit was 34.9% in the second quarter compared to 35.4% in the same period last year. The decrease primarily reflects a higher selling margin offset by higher occupancy costs due to the rollout of new stores.
In the third quarter to date, the company opened new stores in Portland, Oregon; Redwood City, California; El Paso, Texas; and Santa Fe, New Mexico, and closed one store in Northern California. Year-to-date it opened twelve new stores, expanded three stores and closed two stores. It expects to open another eight to ten new stores in fiscal 2006.
Shoe Pavilion is an independent, off-price footwear retailer. It offers a broad selection of women's, men's and children's designer label and name brand footwear, typically at 20% to 60% below department store regular prices for the same shoes.
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