(Reuters) -Lowe's Cos Inc cut its annual comparable sales and profit forecasts on Tuesday, as demand dwindles for home improvement goods with high inflation forcing consumers to cut back on discretionary spending.

Shares fell about 2% premarket after of the North Carolina-based company also missed estimates for first-quarter comparable sales.

Persistent inflation has hammered household budgets across the United States, prompting consumers to pause remodeling projects around their houses and squeezing sales of tools, building materials and appliances at home improvement chains.

Larger rival Home Depot Inc last week also lowered its expectations for annual sales and profits, with Americans now also prioritizing spending on travel, leisure activities and other services instead of investing further in their homes.

Lowe's now expects full-year comparable sales to fall between 2% and 4%, compared to a prior outlook of flat to down 2%. Analysts on average were expecting a 2.13% drop, according to Refinitiv IBES data.

Lowe's also projected full-year adjusted earnings between $13.20 and $13.60 per share, compared with $13.60 to $14.00 estimated previously.

(Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila)