Nobody shops at Shoe Pavilion (SHOE) anymore and it shows

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By Douglas A. McIntyre Published
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New 52-week low for Shoe Pavilion Inc. (SHOE) after they predicted a wider-than-expected Q1 loss yesterday. Shares are now trading just under $5 and in the last three months SHOE’s shares have fallen 26%.

Yesterday Shoe Pavilion said traffic and sales have declined because many new Shoe Pavilion stores are in new shopping malls still under construction. Forget the fact that nobody shops there anymore, I guess they left that out. However I could be wrong, the company said its same-store sales (at stores open for at least a year) grew 7.8%.

Shoe Pavilion is scheduled to post its full first-quarter earnings on May 8th. So yesterday’s bad news could be an indicator that even worse news is headed our way next Monday.

Today Roth Capital Partners LLC downgraded SHOE to "Hold" from "Buy," and cut 2007 earnings estimates to 9 cents per share from 23 cents per share. Everybody loves shoes, but investing in SHOE may not be the way to go. The question is can they keep growing and will Wall Street embrace the stock? When I think shoes, I think Zappos.com and if they get around to IPO’ing, I’ll be on that train.

Frank Lara Jr.

Frank Lara Jr. can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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