UPDATE 1-Cost Plus posts wider-than-expected loss; shares slide

* Q2 loss 90 cents/shr vs est 84 cents/shr

* Q2 sales down 13 pct to 183.4 mln

* Sees Q3 sales 177 mln to $186 mln * Shares down 15 pct in trading after the bell

Aug 27 (Reuters) - Home decor retailer Cost Plus Inc (CPWM.O) posted wider-than-expected quarterly loss and guided lower sales for the third quarter due to weak demand and pressure on its furniture business, sending its shares down 15 percent in after-market trade.

The company posted a loss of $20.7 million, or 94 cents a share, compared with a loss of $26.6 million, or $1.21 a share, a year ago.

Excluding items, it reported a loss of 90 cents a share.

Sales fell 13 percent to $183.4 million.

Analysts on average had expected a loss of 84 cents a share, before items, on revenue of $186.0 million, according to Reuters Estimates.

The operator of Cost Plus World Market stores said it expects borrowings to peak in mid-November at a lower level than last year.

Cost plus expects third-quarter sales between $177 million and $186 million and a loss from continuing operations of $19 million to $24 million.

Analysts see revenue of 190 million for the period.

Shares of the Oakland, California-based retailer, which have risen nearly three-fold in the last six months, were down 15 percent at $2.51 in trading after the bell. They closed at $2.95 Thursday on Nasdaq. (Reporting by Vidya Lakshmi in Bangalore; Editing by Anil D'Silva)