LoweÔÇÖs profit falls, but beats Wall Street estimates

Lowe's Cos., the nation's second biggest home improvement chain, said Monday that its first-quarter profit fell 22 percent, but exceeded Wall Street expectations.┬á Profit dropped to $476 million, or 32 cents a share, from $607 million, or 41 cents, a year earlier. Sales in the three months ended May 1 were $11.8 billion, the company said today in a statement. Analysts had projected profit of 26 cents on sales of $11.6 billion, the average of estimates compiled by Bloomberg. ┬á ÔÇ£Gross margin was a concern coming out of last quarter,ÔÇØ David Schick, an analyst at Stifel Nicolaus & Co. in Baltimore, said in a telephone interview. ÔÇ£This was a big move and it indicates they were better at selling seasonal goods. Anybody can cut costs to make a quarter.ÔÇØ ┬á The Mooresville, N.C.-based retailer said consumers are avoiding bigger-ticket housing items as they try to rack up savings during the recession. But spring did bring smaller, outdoor purchases from customers, and LoweÔÇÖs remains optimistic that economic conditions may be getting better.┬á "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 Robert A. Niblock said in a statement.┬á Niblock noted that Lowe's will still be keeping an eye on its expenses and will "continue to plan conservatively" as many of the variables affecting the housing market are still at or near historic lows.