Footwear retailer Shoe Pavilion, Inc. has reported that net sales increased 26% to $31.4 million in the second quarter from $24.9 million in the prior year period. Comparable store sales increased 3.9%.

Net income for the second quarter increased 43% to $1.01 million versus net income of $704,000 in the prior year period.

Gross profit was 34.9% in the second quarter compared with 35.4% in the same period last year. The decrease primarily reflects a higher selling margin offset by higher occupancy costs due to the rollout of new stores.

Year-to-date the company has opened twelve new stores, expanded three stores and closed two stores. A further eight to ten new stores are expected to open in fiscal 2006.