For the quarter ended July 31, Sharper Image posted a loss of $20.6 million, or $1.36 per share, compared with a loss of $14.6 million, or 98 cents per share, for the same quarter in 2006.

Revenue fell 25 percent to $80.3 million from $107.2 million.

Analysts polled by Thomson Financial expected a loss of 93 cents per share on revenue of $79.2 million.

The company also said Monday that it plans to close its Richmond, Va., distribution center in an effort to streamline functions and increase efficiency.

The Richmond center will phase out its operations over the next several months and transition its workload to the company's other centers located in Little Rock, Ark., and Ontario, Calif., Sharper Image said.

Sharper Image shares fell 2 cents to $4.79 in aftermarket trading, after rising 14 cents, or 3 percent, to $4.81 in the regular session.