The news sent the company's shares up Monday as the company said business was "less bad" in all regions of the country and that economic conditions may gradually be improving.
"In recent weeks we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets, and home prices slow their decline," Chairman and Chief Executive Niblock said in a statement.
The company said consumers are still avoiding bigger-ticket housing items as they try to shore up their savings amid the recession. But shoppers did welcome spring with smaller, outdoor purchases and also bought supplies for easy do-it-yourself projects such as painting.
Like the rest of the housing and home-improvement industry Lowe's has been beaten down by falling home prices, rising foreclosures and unemployment rates, and worsening consumer confidence.
Lowe’s results contributed to the rise of the broader market on Monday.
Niblock said sales in the hardest-hit states such as California, Nevada and Florida were still faring poorly but were beginning to show signs of improvement as more foreclosed properties are purchased. Areas of the Ohio Valley and Texas continued to show sales growth.
"It's moving in the right direction," he said during an interview with The Associated Press.
For the three months that ended on May 1st, Lowe's said it earned $476 million, or 32 cents per share. That's down nearly 22 percent from the previous year's profit of $607 million, or 41 cents per share, but was far above forecasts.
Sales slipped 2 percent to $11.83 billion from $12.01 billion.
Analysts surveyed by Thomson Reuters expected the retailer to earn 25 cents per share on revenue of $11.63 billion.
For the full year, Lowe's forecast earnings of $1.13 to $1.15 per share. The retailer's second-quarter guidance anticipates profit of 51 cents to 55 cents per share.
Lowe's expects a sales decline of 2 percent to an increase of 1 percent for both the full year and the second quarter.
Analysts predict 2009 net income of $1.11 per share on revenue of $47.16 billion. Second-quarter profit was expected to be 50 cents per share on sales of $14.12 billion.
Lowe's forecast a same-store sales decline of 4 percent to 8 percent for both the second quarter and the year. That figure fell 6.6 percent in the first quarter, less than expected.
