US footwear retailer Shoe Pavilion, Inc. has reported higher sales for the fourth quarter ended December 30. Net sales increased 38.6%, or $11.3 million, to $40.8 million from $29.5 million for the fourth quarter of 2005. Comparable store net sales for the fourth quarter increased 8.6%. In spite of these improved figures, gross profit fell 33.8% compared with 36.3% in the same period last year, primarily due to higher occupancy costs as a result of the company’s rapid rollout of new stores and a reduction in selling margins.
