Shoe Pavilion Inc has reported net income of $24,000 for the third quarter ended 2 October 2 2004 compared to a net loss of $1.2 million for the third quarter of 2003.

Net income for the nine months ended 2 October 2004 was $1.1m or $0.16 per share, compared to a net loss of $2.8m for the year-before period.

The results for the third quarter and nine month periods ended 2 October 2004 include the reversal of $258,000 before taxes of a reserve recorded in the fourth quarter of 2003 for costs associated with the settlement of a wage and hour lawsuit.

Net sales decreased 4.2 per cent to $20.7m for the third quarter ended 2 October 2004, from net sales of $21.6m for the comparable period in 2003. Net sales for the nine months ended 2 October 2004 were $61.0m, a 0.6 per cent decrease from net sales of $61.3m for the nine months ended 27 September 2003.

Comparable store net sales dropped 6.3 per cent for the third quarter ended 2 October 2004 from the same period last year and increased 0.1 per cent for the nine months ended 2 October 2004 from the same period last year.

The company now operates a total number of 86 stores and plans to open five to ten new stores in 2005.

Shoe Pavilion is an independent off-price footwear retailer on the West Coast selling ladies' men's and children's designer label and branded footwear such as Converse, Reebok, Skechers and Nine West.