Lowe's sinks after sales miss expectations

Lowe's Cos Inc reported lower-than-expected quarterly comparable sales on Wednesday.

It shares fell 5% in premarket trading.

Sales at Lowe's stores open more than 13 months rose 2 percent, below the 4.1 percent growth expected by analysts polled by research firm Consensus Metrix.

Net income rose to $1.17 billion, or $1.31 per share, in the second quarter ended July 29 from $1.13 billion, or $1.20 per share, a year earlier.

CEO Robert Niblock said in the earnings statement that Lowe's was "well positioned to capitalize on a favorable macroeconomic backdrop for home improvement in the second half of the year."

Lowe's rival Home Depot on Tuesday reported earnings and sales that were better than expected, and raised its full-year guidance. The company said it remained bullish on the housing market because of rising home prices, housing turnover, and new household formations.

Lowe's shares have gained 7% this year.

(Reuters editing by Anil D'Silva)