May 21 (Reuters) - Lowe's Cos reported a lower-than-expected drop in quarterly sales on Tuesday, helped by more small-scale repairs undertaken by inflation-hit Americans, who have otherwise cut back on big-ticket discretionary home improvement projects.
The North Carolina-based company's shares, which have risen 3% this year, rose 2.2% in premarket trading.
Despite higher prices and interest rates making customers wary about undertaking larger repair projects, they have been willing to spend on non-discretionary and smaller repair works like those related to plumbing and exterior painting, which have helped prop up sales at home-improvement retailers.
"This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories," CEO Marvin Ellison said.
Larger rival Home Depot last week also reiterated its annual targets on the hope of a recovery in demand, even as it posted a bigger-than-expected drop in quarterly sales.
Same-store sales at Lowe's fell 4.1% in the first quarter, compared with analysts' average estimate of a 5.65% decline, according to LSEG data.
The home improvement chain reaffirmed its annual sales and profit target for the fiscal year.
