Lowe's cuts outlook again after Q2 sales miss

NEW YORK (Reuters) - Lowe's Cos Inc reported weaker-than-expected quarterly sales and cut its fiscal-year outlook for the second time in three months as home owners put off big renovations in an anemic U.S. economy.

Lowe's, the second-largest home improvement chain behind Home Depot Inc , on Monday said sales rose 1.3 percent to $14.54 billion in the second quarter, missing analysts' average estimate of $14.75 billion.

"Despite some recovery in our seasonal business, our performance for the quarter fell short of our expectations," said Robert Niblock, Lowe's chairman, president and CEO.

Sales at stores open at least a year fell 0.3 percent.

Many U.S. homeowners have been hesitant to spend on expensive renovations as housing prices fall and the economy shows few signs of a stable recovery. Home improvement chains have also found it harder to sell expensive items such as appliances.

Industry leader Home Depot is due to report quarterly results on Tuesday. Last week, Canadian rival Rona Inc reported a steeper-than-expected 40 percent drop in quarterly profit.

Lowe's now sees sales rising about 2 percent for the fiscal year ending February 3, down from its prior forecast for a 4 percent increase.

Net income was $830 million, or 64 cents a share, in the second quarter, compared with $832 million, or 58 cents a share, a year earlier.

Excluding special items, it earned 68 cents a share. On that basis, analysts were expecting 66 cents, according to Thomson Reuters I/B/E/S.

The company now sees earnings of $1.48 to $1.54 a share for the year. In May, it cut its forecast to a range of $1.56 to $1.64 a share, down from a prior outlook of $1.60 to $1.72.

(Reporting by Dhanya Skariachan; editing by John Wallace)