Feb 27 (Reuters) - Lowe's Cos (LOW.N) , opens new tab forecast annual sales and profit below Wall Street estimates on Tuesday, in signs that a recovery would take longer than expected as spending on home-improvement projects remained under pressure.

Shares edged higher in choppy premarket trading after the company topped market estimates for fourth-quarter comparable sales while the downbeat outlook was largely expected as larger rival Home Depot (HD.N) , opens new tab had tempered expectations last week.

Higher prices of essentials have squeezed household budgets across the U.S., prompting customers to allocate fewer dollars to large-scale home remodeling and instead take up only necessary maintenance projects.

Lowe's is also more exposed to DIY customers, who have pulled back on spending on appliances and other discretionary categories such as kitchen and flooring. DIY accounts for about 75% of the company's total sales, compared with roughly half at Home Depot.

The forecasts come as investors had pinned their hopes on a rebound in 2024 after a transition year in 2023 following the surge seen during the pandemic.

Lowe's expects comparable sales to be down 2% to 3% in fiscal 2024, while analysts on average expect a 1.13% drop, according to LSEG data.

It projected annual earnings per share between $12.00 and $12.30, compared with estimate of $12.75.

Although green shoots are starting to show in the U.S. housing market as existing home sales climbed to a five-month high in January, tight supplies and a resumption in an upward trend in mortgage rates have pressured the market.

Lowe's posted a profit of $1.77 per share in the fourth quarter, beating estimates of $1.68. Same-store sales declined 6.2% during the period, compared with expectations for a decline of 7.06%.

https://www.reuters.com/business/retail-consumer/lowes-forecasts-2024-sales-profit-below-estimates-2024-02-27/