Furnishings chain swings to a loss

Restoration Hardware Inc., a home-improvement and furnishings retailer, said it swung to a loss in the fiscal second quarter, hurt by weak sales and more promotional selling as housing market problems persist.

For the quarter that ended Aug. 4, the company lost $7.9 million, or 20 cents a share, versus a year-ago profit of $236,000, or a penny a share. Revenue rose nearly 3% to $183.8 million.

This month the company lowered its guidance to a loss of 19 cents to 21 cents a share and said it expected revenue between $183 million and $185 million.

Analysts polled by Thomson Financial expected a loss of 20 cents a share on revenue of $183.9 million.

The company said results were hurt by weakness in the home building sector and the “challenging” home-furnishings environment.

Restoration Hardware said it expected the difficult retail environment to persist and forecast a loss for the fiscal third quarter.

Shares of the Corte Madera, Calif.-based company were unchanged at $3.50.