You can't spell 'Lower Profits' without Lowe's (LOW)

We already knew the various housing woes were likely to impact home-improvement retailers, as sales figures slow along with construction and remodeling. But evidently people are just as apathetic about their yards, as falling sales of patio equipment and plants have negatively impacted full-year earnings for Lowe's (NYSE: LOW).

The nation's second-largest home-improvement retailer said earnings this year are likely to be at the low end or slightly short of the $1.97 to $2.01 per-share range estimated on August 20. By association, per-share earnings will likely miss analysts' consensus view, currently reported as $2.01 by Bloomberg. Thomson Financial shows an average analyst estimate of $1.99 per share.

According to the company, dry summer months -- especially in the mid-Atlantic, Southeastern, and Western regions -- kept consumers indoors and uninterested in buying outdoor products and supplies.

While the current challenges are expected to continue into 2008, LOW still expects average earnings-per-share growth of 12% to 15% per year and sales growth of 8% to 11% per year between 2008 and 2010, according to a Dow Jones report. By 2010, earnings per share are expected to expand in the high teens.

In after-hours trading, LOW has surrendered 5.7% after shedding a fraction in regular trading. The company's chief rival, Home Depot (NYSE: HD), is also declining -- moving 2.2% lower tonight after a regular-session loss of 1.7%.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.