* Q2 loss/shr 6 cts vs Street’s loss estimate 2 cts/shr
* Sales down 24 percent (Adds estimates, background, CEO quote)
NEW YORK, Jan 28 (Reuters) - Ethan Allen Interiors Inc (ETH.N) posted a wider-than-expected quarterly loss on Thursday as cost cuts failed to offset weak demand for its higher-priced furniture.
The upper-end retailer stuck to full prices throughout most of the downturn, disappointing many budget-conscious shoppers. It is now offering more promotions to curtail share losses.
Ethan Allen also consolidated its manufacturing operations and retail service centers to cut costs.
“The consolidation and restructuring initiatives did result in lower delivered sales in the December quarter while increasing our backlogs,” CEO Farooq Kathwari said in a statement.
Ethan Allen said its net loss was $3.3 million, or 12 cents a share, for the second quarter that ended Dec. 31, compared with a net profit of $5.5 million, or 19 cents a share, a year earlier.
Excluding items, the loss was 6 cents a share, missing the analysts’ average forecast calling for a loss of 2 cents a share, according to Thomson Reuters I/B/E/S.
Net delivered sales fell 24 percent to $143.3 million. (Reporting by Dhanya Skariachan, editing by Gerald E. McCormick and Maureen Bavdek)