Shares of the company fell more than 3% in premarket trading, as it also cut its full-year profit forecast to $13 per share from a range of $13.20 to $13.60 per share estimated previously.

The U.S. home improvement market has been moderating this year, with consumers pausing big home remodeling and discretionary projects and taking up only small, essential projects as household budgets are stretched thin amid inflation.

Lowe's downbeat report comes in contrast with larger rival Home Depot, which last week topped market expectations for quarterly results as it saw steady demand for plumbing and hardware as well as some big-ticket items sought after by "Pro-customers" such as professional builders and contractors.

While Home Depot benefits from about half of its customer base being "Pro-customers," they only account for roughly 25% of the base at Lowe's, with the rest comprised of Do-It-Yourself (DIY) customers - a cohort that has been more cautious with their spending.

Lowe's now expects full-year comparable sales to decline 5%, compared with a fall of 2% to 4% estimated previously. Analysts on average expect a 3.4% drop, according to LSEG IBES data.