Aug 20 (Reuters) - Zumiez Inc (ZUMZ.O) posted a narrower-than-expected quarterly loss, on better inventory management and improving sales trends as the quarter progressed.

Grant Taylor for Volcom back-to-school at Zumiez - Photo: zumiez.com

"Despite the weak and volatile market conditions, we are encouraged with our ability to effectively manage our inventory and improve our cash position," Chief Executive Officer Rick Brooks said in a statement.

The retailer, which sells skate and snow-boarding inspired apparel and accessories, lost $3.1 million or 10 cents a share in the second quarter, compared with a loss of $2.7 million or 9 cents a share in the year-ago quarter.

Excluding charges, Zumiez posted a loss of 7 cents a share. Revenue fell 8 percent to $85.2 million in the period.

Analysts on average were expecting the company to report a loss of 13 cents a share, before items, on revenue of $83.6 million, according to Reuters Estimates.

Zumiez, whose rivals include Pacific Sunwear of California Inc (PSUN.O), also said it expects third quarter earnings of about 5 to 7 cents a share, compared with average analyst expectations of 6 cents a share.

"While comparisons do begin to moderate in the back half of the year, we believe it is prudent to remain cautious with regard to our near-term outlook until consumer trends stabilize and visibility improves," the CEO said.

Shares of the Everett, Washington-based retailer closed at $12.28 Thursday 20 August on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anthony Kurian)