GOIH Capital Markets: Lowes (LOW) down on lower sales.

NEW YORK (MarketWatch) -- Shares of Lowe's slumped in Tuesday trading after the home-improvement retailer said that sales are trending below plan and warned that its fiscal 2007 earnings would come in at the low end of its previous expectations.

Mooresville, N.C.-based Lowe's attributed the slowing sales to drought conditions in the mid-Atlantic, Southeastern and Western regions, which hurt sales of outdoor products. The company said late Monday that it now expects fiscal full-year earnings at the low end of its earlier forecast of $1.97 to $2.01 a share.

In a conference call before the start of trading Tuesday, Chief Executive Robert Niblock underlined the problems facing the company, saying that the sales environment remains challenging as consumers hesitate to take on some projects, and adding that pressures on the housing market are mostly regional in nature.