Shoe Pavilion widens Q3 loss

US: Shoe Pavilion widens Q3 loss, adds consignment lines

By just-style.com | 26 November 2007

Off-price footwear retailer Shoe Pavilion Inc today (26 November) widened its third quarter net loss as it sold off stock to make way for the addition of a range of new branded consignment merchandise to its stores.

The Sherman Oaks, California based company said net loss was $10.2m, or $1.07 per share, for the three months to 29 September, compared with a net loss of $0.32m, or $0.03 per share, for the third quarter of 2006.

It said the loss was also impacted by an asset impairment charge and a $4.8m income tax expense.

Net sales for the quarter rose 18.2% to $37.3m from $31.6m, and comparable store sales increased 2.3%.

Dmitry Beinus, president and chief executive officer, said the retailer now plans to bring branded consignment denim, sportswear, accessories and fragrance merchandise into its 113 stores.

"We will be rolling out this initiative into all of our stores through the next fiscal year," he said.

The company expects the branded consignment merchandise will eventually account for 10% to 20% of annual net sales.

Shoe Pavilion also said it has appointed Michael P McHugh as its executive vice president and chief financial officer. Mr McHugh has worked at both J Crew Group Inc and Authentic Fitness Inc.

Sectors: Footwear, Retail

Companies: Shoe Pavilion, J Crew