* Q2 loss per share $0.03 vs est profit $0.01
* Revenue up 3 pct to $492.2 mln
June 7 (Reuters) - Sportswear retailer Quiksilver Inc reported a quarterly loss, though analysts expected a profit, as the company continued to be pressured by higher costs and a tough economic environment hurt sales in Europe.
Quiksilver, which missed Wall Street estimates for the fourth quarter in a row, however, said it expects to reduce inventory levels in the second half on a strong fall season.
Second-quarter loss narrowed to $5.1 million, or 3 cents per share, from a $83.3 million, or 51 cents per share, last year.
The company, which sells branded apparel, footwear, accessories and snowboards, reported a loss of 2 cents per share, excluding items.
Gross margin contracted to 49.2 percent from 54.8 percent.
Revenue grew 3 percent to $492.2 million. But European revenue fell 6 percent to $195.6 million.
Analysts on average were expecting Quiksilver to earn 1 cent per share on a revenue of $495.87 million, according to Thomson Reuters I/B/E/S.
Shares of the Huntington Beach, California-based company closed at $2.44 on Thursday on the New York Stock Exchange.