Aug 20 Reuters Lowe39;s cut its annual profit and sales forecasts on Tuesday, echoing bigger rival Home Depot39;s concerns of a slim chance of a recovery in home improvement demand this year.

The U.S. Federal Reserve was expected to cut interest rates earlier this year, but insufficient proof of easing inflation thus far has kept the rates high, which is affecting home sales, and consequently demand for expensive renovation projects.

We39;re seeing significant implications … people aren39;t moving nearly as often as they typically do because current mortgage rates are so much higher, said CEO Marvin Ellison on a postearnings call.

Lowe39;s expects a 3.5 to 4 drop in comparable sales for the full year and adjusted earnings per share of about 11.70 to 11.90, down from about 12.00 to 12.30 it previously forecast.

Last week, Home Depot also forecast a decline in annual profit and a bigger drop in annual comparable sales.

Unusually warm weather also dented sales for the home improvement companies during the typically strong spring season, as consumers put off expensive lawn and garden projects.

Tepid demand for doityourself DIY projects, which account for more than half of Lowe39;s sales, led to a 5.1 drop in secondquarter comparable sales wider than analysts39; expectation of a 4.11 fall, per LSEG data.

Lowe39;s shares were down marginally in choppy trading.

The company, however, beat analysts39; estimates of adjusted earnings per share, helped by cost control…