Lowe's (LOW) delivered on subdued expectations after years of post-pandemic struggles.

The home improvement chain reported earnings on Wednesday morning that matched estimates on revenue and beat on earnings. Revenue fell 2% year over year to $20.93 billion, while adjusted earnings per share dropped 4.6% to $2.92, compared to the $2.88 expected.

Lowe's CEO Marvin Ellison said in the release the company overcame "near-term uncertainty and housing market headwinds" through "strategic investments in technology...[and] inviting store environments."

Same-store sales fell 1.7%, better than the 2.04% decline expected. That's a reversal after same-store sales growth turned positive in Q4 for the first time in roughly two years. The company attributed the decline to "unfavorable weather earlier in the quarter" that was offset by "mid-single-digit Pro and online comparable sales growth."

Lowe's stock is up nearly 3% in premarket trading. Prior to Wednesday's report, Lowe's stock was down around 6% year-to-date versus a 1% gain for the S&P 500 (^GSPC).

Rival Home Depot's (HD) stock was down 3.1% year to date. It reported a mixed earnings report on Tuesday as it reiterated guidance and said it will not raise prices due to tariffs.

Here's what Lowe's reported for its first quarter earnings compared to Wall Street consensus estimates, according to Bloomberg:

• Revenue: $20.93 billion versus $20.93 billion

• Adjusted earnings per share: $2.92 versus $2.88

• Same-store sales growth: -1.7% versus -2.04%

The company reiterated its guidance for 2025 fiscal year. Total sales are projected to be $83.5 billion to $84.5 billion, while same-store sales are expected to be flat to up 1% year over year.

Tariff uncertainty remains a top concern. The US temporarily dropped tariffs on Chinese imports from 145% to 30%, while so-called reciprocal tariffs have been suspended for a 10% universal duty. However, rates are still much higher than they were historically, and the changing tariff environment has tanked consumer sentiment.

Lowe's sources 20% of its sales from China and has a large DIY customer base, factors that will make it "more challenging to mitigate tariffs" compared to Home Depot, TD Cowen analyst Max Rakhlenko wrote in a note prior to earnings.

He added that Home Depot is "better positioned to manage tariffs," partially due to its larger pro business.

Another factor weighing on the retailer is the sluggish housing market. Homebuilder confidence continued to deteriorate in May. Expected sales in the next six months and traffic from prospective buyers also fell to an 18-month low.