Lowe's Cos Inc
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, Chief Executive Robert Niblock said in a statement.
He added that though these are positive signs, many economic indicators remain near historic lows, and Lowe's will continue to be conservative with its plans.
Lowe's net profit fell to $476 million, or 32 cents a share, for the first quarter ended May 1 from $607 million or 41 cents a share, a year earlier.
Analysts, on average, had expected a profit of 25 cents per share, according to Reuters Estimates.
Sales at the second-largest home improvement retailer fell 1.5 percent to $11.83 billion.
For the full year ending January 29, Lowe's said it now expects to earn $1.13 per share to $1.25 per share. It had previously expected earnings of $1.04 per share to $1.20 per share.
Analysts have looked for Lowe's to earn $1.11 per share.
It also expects to earn 51 to 55 cents per share for the second quarter ending July 31 on a sales decline of 2 percent to an increase of 1 percent.
Its shares rose to $20.50 before markets opened from Friday's close of $18.45 on the New York Stock Exchange.
(Reporting by Aarthi Sivaraman; Editing by Lisa Von Ahn and Gerald E. McCormick)