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"It seems to be a strategy to clear inventory that's not selling well," Mr. Sharma said in an interview.
Many began slashing prices even before Christmas in a desperate attempt to clear inventory and raise cash.
"Furthermore, unlike Q1, we suspect gross margin deterioration to be a factor as management seeks to clear inventory build-up".
The company, based in Los Angeles, said it earned $5.64 million, or 13 cents a share, in the third quarter, depressed by heavy discounting to clear inventory, and expected to earn only 8 to 10 cents a share in the fourth quarter.
Even more promising, it has not had to resort to deep discounts to clear inventory, as rivals have, said Scott Searle, an analyst with SG Cowen.
With a drop in consumer demand, many retailers reduce prices to clear inventory, which means you may even be able to get that 80-incher for less.
Trying to change their promotional tact while trying to clear inventory and move towards more centralized merchandising will be challenging in a tough traffic environment," JPMorgan analyst Brian Tunick had said in mid-January.
Retailers cut prices to clear inventory, sacrificing profit.
That could mean bargains among the B material as dealers clear inventory to trade up.
The company marked down prices to clear inventory, reducing profit on each sale, analysts said.
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