Off-price footwear chain Shoe Pavilion Inc on Thursday posted a steep fall in second quarter net profit to $528,000 from $946,000 in the year-ago period amid a 3.7 per cent slip net sales to $22.7 million.

The California-based operator of 82 outlets said net sales at its own stores and Gordmans licensed shoe departments were $20.5m and $2.2m, respectively, compared to $19.6m and $4m, respectively, in 2001.

It added first half net profit fell by a third to $605,000 but net sales climbed 2.8 per cent to $44.2m, while comparable store net sales for the Shoe Pavilion stores, excluding the licensed shoe departments, fell 3.4 per cent.

Shoe Pavilion announced earlier this year it will no longer operate 40 licensed shoe departments in Gordmans department stores.