Canadian supermarket chain Loblaw forecasts annual profit below estimates

Adds details from the release throughout

Feb 20 (Reuters) - Canadian retailer Loblaw Companies L.TO on Thursday forecast annual profit below Wall Street estimates, on signs of weak demand for discretionary items such as home appliances and furniture.

The company forecast adjusted net earnings per share growth in the high single digits, below expectations of 11.16% growth, according to data compiled by LSEG.

The retailer would invest C$2.2 billion this year to renovate existing stores and open new outlets, which would create about 8,000 jobs, it said earlier this week.

For the fourth quarter, Loblaw also fell slightly short of analysts' estimates for sales and profit, hurt by weak demand for apparel, as well as pricier products such as kitchen appliances and furniture.

Loblaw's results reflect weak consumer spending in the country. Canadians reportedly spent less on groceries, beverages and furniture during October and November, according to data from Statistics Canada.

High living costs and mortgage rates have shrunk disposable incomes of Canadians, affecting retailers of essential goods such as Loblaw.

Loblaw's quarterly revenue rose 2.9% to C$14.948 billion ($10.52 billion), compared with analysts' average estimate of C$14.954 billion, according to data compiled by LSEG.

The company earned C$2.20 per share for the quarter ended December 28, missing expectations of C$2.21 per share.

($1 = 1.4213 Canadian dollars)