The major home improvement retailers are still down, but they’re doing better. Enough so that analysts think the worst may have passed for their bottom lines and the housing market.

Shares of Lowe’s ( LOW – news – people ) gained 8% Monday after the company announced it made $476 million in the first quarter, or 32 cents a share, exceeding Wall Street forecasts of 25 cents a share. The Street reacted enthusiastically, even though profit was 22% below last year’s first quarter. Sales inched down 1.5% to $11.8 billion, less than expected, thanks to a steady stream of buyers for small items. That’s got Lowe’s executives confident of a thaw in consumer spending, even as most shoppers continue to hold off on big-ticket items.

* Full story available on The Forbes