Shoe Pavilion Inc. reported net income for the second quarter ended July 1 rose 43 percent to $1.0 million or $0.10 per diluted share, up from $704,000 or $0.10 per share in the second quarter of 2005. Sales rose 26 percent to $31.4 million with comparable store sales rising 3.9 percent. In the second quarter a year ago, Shoe Pavilion reported revenues of $24.9 million. Sherman Oaks-based Shoe Pavilion said that excluding charges connected with the settlement of a lawsuit, the company would have earned $1.1 million or $0.11 per share.