Shoe Pavilion Inc. said it expects to report a second quarter loss of about $1 million to $1.2 million or $0.10 to $0.12 per diluted share, compared to previous net income guidance in the range of $0.02 to $0.02 per share. Net sales for the second quarter were $37.5 million, compared to previous guidance in the range of $37 million to $39 million. Sherman Oaks-based Shoe Pavilion said the 24 stores opened in 2006 generated sales that were below the company’s expectations for the group and accounted for the majority of the second quarter operating loss. “Most of the stores we rolled out in 2006 were in new shopping centers where we have experienced slower than expected traffic due to ongoing construction as well as it taking longer than planned for other retailers to open stores at those centers,” said Dmitry Beinus, CEO of Shoe Pavilion.