The cost of opening new stores and a reduction in selling margins affected the second quarter financial performance of Show Pavilion. The Sherman Oaks-based retailer suffered a net loss of $1.1 million, or $0.11 per diluted share, on revenues of $37.5 million for the second quarter ending June 30. That is a downturn compared to the net income of $1 million, or $0.10 per diluted share, on revenues of $31.4 million for the same reporting period a year ago. Gross profit also declined, from 34.9 percent for second quarter 2006 to 29.3 percent for the same period this year. Shoe Pavilion attributes the decline to higher occupancy costs due to the rapid rollout of new stores during the past year and a reduction in selling margins.
