Lowe's Cos. posted a smaller-than-expected drop in first-quarter comparable sales Wednesday, helped by customer spending on home maintenance projects even as they held off on big-ticket purchases amid higher borrowing costs.

The home improvement retailer also reaffirmed its annual forecast, a day after rival Home Depot did the same.

Atlanta-based Home Depot also said it would not raise its prices, betting that its diversified supply chain and stronger hold in the professional customer base would help it tide over tariff-led uncertainty.

The move was at odds with retail giant Walmart, which last week warned that shoppers could soon face higher prices due to the U.S. tariffs.

Escalating fears over the economic impact of U.S. President Donald Trump's trade policy have led to a plunge in consumer sentiment in recent months, further driving customers away from large-scale renovation projects that typically require refinancing.

Lowe's CEO Marvin Ellison said the company was operating amid "near-term uncertainty and housing market headwinds," but strategic investments in its stores and technology have lifted its sales.

The company has expanded its business serving professional customers, such as home builders and property managers, to counter sluggish demand in do-it-yourself categories. It has also added more local suppliers to mitigate any impact from tariffs.

Lowe's sources roughly 40% of its products from outside North America, including China and Mexico.

The company said it expects comparable sales for 2025 to be flat to up 1% and earnings per share in the range of $12.15 to $12.40.

Shares of the company rose 3% in premarket trading.

Lowe's reported a 1.7% drop in same-store sales for the quarter ended May 2, compared with analysts' average estimate of a 2% decline, according to data compiled by LSEG.

• Home Depot Doesn't Expect to Boost Prices Because of Tariffs
• Walmart Sales Solid in Q1; Will Raise Prices Due to Tariffs