Lowe's - the second-largest retail home improvement after The Home Depot posted its first quarterly profit increase in over two years as the company foresees an improvement in demand for kitchen cabinets and other high-value items, indicating a trough in the housing market.

The Mooresville, North Carolina-based Company reported a net income to $205 million from $162 million, a year earlier. Revenues for the quarter ended January 29, rose 1.8 per cent to $10.2 billion, while comparable sales - sales for stores open at least one year, fell 1.6 per cent.

Lowe's expects the comparable sales growth of 1 - 3 per cent for this fiscal, as the company continues to plan unadventurously against an uncertain economic environment. "While uncertainty remains, we still face a psychological impact of consumers wondering when home prices will finally bottom and when the job market will improve," said CEO, Robert Niblock. The company will also buy back $5 billion of shares in a new repurchase program.

The first quarter profit of 27 cents to 29 cents fell short of analyst's expectation, while the $1.30 to $1.42 profit outlook for full year was in line.