On Wednesday, shares of high-end home furnishings company Ethan Allen are tumbling, down almost 10% in midday trading after it said that it expects to report lower-than-expected second quarter results.

Ethan Allen is just one of many companies who have faced a challenging retail environment, especially during the recent holiday season. The company now forecasts earnings per share of 38 cents to 39 cents, well below consensus estimates of 59 cents per share.

Total revenues of $194.7 million, down from $207.5 million from a year ago and below consensus estimates of $213.7 million. Delivered sales declined 6.2%, while written retail orders fell 3.6%.

Chief Executive Farooq Kathwari said “Our plans are to start substantially increasing our marketing in both digital and traditional mediums starting from our current third quarter with continued increases as we move forward.”

Ethan Allen hopes to boost its performance by revamping and “freshening” up its furniture products. The company is also launching a collaboration with Disney (DIS Quick QuoteDIS - Free Report) that will offer Disney-themed furniture, lighting, bedding, and other home décor.

ETH is currently a #3 (Hold) on the Zacks Rank, and plans to release its next quarterly results after market close on January 24.

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