Cut-price shoe retailer Shoe Pavilion Inc said net sales dropped of 4.2 per cent to $20.7 million for the third quarter ended 2 October 2004, from net sales of $21.6m for the same 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 decreased 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.

Chairman and chief executive officer, Dmitry Beinus said: "…the decline in comparable store sales during the third quarter was due in part to the reduction in advertising in the third quarter of 2004 as compared to the same period in 2003."