Shoe Pavilion, Inc (Nasdaq:SHOE) today announced net income of $1.1m, or $.17 per share, for the second quarter ended July 1, 2000 compared to net income of $842,000, or $.12 per share, for the second quarter of 1999. Net income for the six months ended July 1, 2000 was $1.4m, or $.20 per share, unchanged from net income of $1.4m, or $.20 per share, for the same period in 1999.

Net sales increased 45.1 per cent to $25m for the second quarter ended July 1, 2000, from net sales of $17.2m for the same period in 1999. Net sales for the six months ended July 1, 2000 were $44.3m, a 40.8 per cent increase from sales of $31.4m for the same period in 1999. Comparable store sales increased 13.4 per cent for the second quarter ended July 1, 2000 from the same period in 1999.

During the quarter ended July 1, 2000, the company opened two new stores and closed one store. Since the end of the quarter the Company has opened two additional stores. The recent openings bring the total number of stores and licensed shoe departments, net of closures, to 114 as of Aug. 3, 2000.

"We have made substantial improvement in our same store sales during the second quarter with a 13.4 per cent increase," said Dmitry Beinus, chairman and CEO of Shoe Pavilion. He continued, "We are pleased with our performance for the second quarter this year, the recent quarterly results are noteworthy, since the retail shoe category has been under considerable competitive pressure during the past year."

Shoe Pavilion is the largest independent off-price footwear retailer on the West Coast. It offers a broad selection of women's and men's designer label and name brand footwear such as Esprit, Puma, Clarks, Dexter, Skechers, Dr. Marten and Timberland, typically at 30 per cent to 70 per cent below department store regular prices for the same shoes. The Company has 79 of its own stores in California, Washington and Oregon and Oklahoma and operates the licensed shoe departments of 35 Gordman's Department Stores in eight Midwestern states.