Off-price footwear chain Shoe Pavilion Inc on Wednesday revealed it swung to fourth quarter net loss and said its full year net profit slumped more than 90 per cent from the year-ago period.

The California-based operator of nearly 90 stores posted a quarterly net loss of $354,000 versus a year-ago profit of $315,000 and said its 2002 profit plunged to $147,000 from $1.5 million in the year prior.

Quarterly net sales fell 13.4 per cent to $20.7m from $23.9m while same store sales fell 3.7 per cent. Annual net sales slipped 4.9 per cent to $83.8m from $88.1m in 2001 with same-store sales down one per cent.

In a news release, Shoe Pavilion highlighted that fact its license agreement with Gordmans department stores was terminated last year which led to the discontinuation of its licensed shoe departments in 40 Gordmans department stores.

It said he licensed shoe departments operating contribution before overhead, distribution costs, interest and taxes was approximately $700,000 and $2.9m for the years ended December 28, 2002 and December 29, 2001, respectively.