UPDATE 2-Casual Male Q3 loss narrows but misses forecast

* Q3 loss $0.03/shr vs est loss $0.02/shr

* Q3 rev down 11 pct, below Street view

* Says cautious about Q4 sales trends

* Narrows forecast range for FY sales decline

* Trimmed inventories by 17 pct, total debt by 50 pct (Adds CFO quote, details, I/B/E/S comparison for 2009 sales) Nov 19 (Reuters) - Casual Male Retail Group Inc (CMRG.O) cut its quarterly loss by more than half as it imposed greater controls on costs, inventory and debt, but the men's apparel retailer forecast a full-year sales decline that was slightly more pessimistic than before.

"Our outlook for the balance of 2009 remains cautious and we are positioned to generate free cash flow for the year of $15 to $20 million, resulting in a further reduction of our total debt to under $20 million at year end," Chief Financial Officer Dennis Hernreich said in a statement.

The company now expects 2009 sales to drop 11 percent to 12 percent from 2008 levels, compared with an earlier forecast of a decline of between 10 percent and 12 percent.

Casual Male reported 2008 sales of $444.2 million.

Analysts were expecting the company to report 2009 sales of $445.4 million, according to Thomson Reuters I/B/E/S.

Selling, general and administrative (SG&A) expenses and inventories were both down 17 percent, and Casual Male Retail cut its debt in half to about $35 million.

The retailer, which operates the Casual Male XL and Rochester Big and Tall Stores, reported a third-quarter loss of 3 cents a share, down from a loss of 8 cents a share, a year earlier. Revenue at the company, which makes clothing for bigger and taller men, fell 11 percent to $88.7 million.

Analysts were looking for a loss of 2 cents a share, on revenue of $91.9 million.

Shares of the Canton, Massachusetts-based company, which have risen 25 percent in the past three months, closed at $2.79 Wednesday on Nasdaq.

For the alerts, double-click [ID:nWNAB7970] (Reporting by Shradhha Sharma in Bangalore; Editing by Mike Miller)