California-based footwear retailer Shoe Pavilion, Inc. has reported significant sales increases for its first quarter ended March 31.

Net sales increased 32.6%, or $8.9 million, to reach $36.2 million from $27.3 million in the first quarter of 2006. Sales from the company’s new and relocated stores contributed $10 million in the first quarter.

Gross profit was 28.8% compared with 34% in the same period last year, whilst a net loss of $1.2 million was incurred compared with net income of $206,000 in 2006.

Chairman and CEO, Dmitry Beinus, said that the company’s first quarter performance was below original expectations due to lower sales from its newly opened stores. The company anticipates that net sales will range between $37 million and $39 million in the second quarter of 2007, an increase of 18%-24% compared with the first quarter of 2006. For the full year, net sales are expected to be $155.5 million to $160.5 million, an increase of 18%-22% compared with 2006.