By Karen Jacobs
ATLANTA, June 15 (Reuters) – Furniture companies are facing tougher times as higher gasoline prices and rising interest rates put more pressure on

middle-class consumers, leading them to pull back from big-ticket purchases.

This week, Stanley Furniture Co. (STLY.O: Quote, Profile, Research) became the latest in the sector to cite sales weakness when it warned that second-quarter results would fall short of previous estimates. Its shares closed down 4 percent on Thursday after falling as much as 7 percent earlier in the day.

“We’ve seen retail furniture (sales) be slow since March,” said Jerry Epperson, an furniture analyst with Mann, Armistead & Epperson in Richmond, Virginia. “The recovery just isn’t there right now.”

Though furniture sales are typically weakest at this time of year and stronger in the second half, an added challenge is getting middle-income consumers to buy in an atmosphere of higher gasoline prices, minimal wage increases and slower housing growth, Epperson said.

“The investment climate hasn’t been the best,” Epperson said. “Asset prices, particularly home prices, aren’t growing like they were before. We’re not seeing the home refinancings that put a lot of money in people’s pockets.”

Last week, La-Z-Boy Inc. (LZB.N: Quote, Profile, Research) forecast profit for its current quarter below Wall Street estimates on flat sales, saying it was concerned about the economy in light of volatile energy markets and rising interest rates.

And Furniture Brands International Inc. (FBN.N: Quote, Profile, Research) announced another plant closing at its Broyhill mid-priced brand, which has seen sales weakness in recent quarters.

Geoff Wissman, vice president with consultants Retail Forward, says traditional furniture companies are also seeing more mass-market retailers beef up their furniture merchandise, making it harder, but more important to compete on price for middle-class dollars