Lowe's ( LOW) reported a 40.5% increase in second-quarter earnings, topping the First Call EPS estimate by 5 cents.

The home improvement retailer earned $467.1 million, or 59 cents a share, vs. 2001's $329.1 million, or 42 cents a share. First Call/Thomson Financial analysts had predicted Lowe's to earn 54 cents a share.

Revenue was $7.49 billion, a 22% increase over last year's $6.13 billion.

The company said it had strong results in all geographic regions and product lines. "While mixed economic signals make it difficult to develop a comfort level about the overall direction of the economy, our balanced performance, as well as current and continued positive trends in home improvement spending, gives us confidence that the home improvement consumer remains resilient and Lowe's is positioned to capitalize on a growing home improvement market," the company said.

Looking ahead, Lowe's expects to earn 39 cents or 40 cents a share in the third quarter and $1.74 or $1.75 for the full year. Analysts polled by First Call predicted the company would earn 39 cents a share in its third quarter and $1.71 in the year.

Shares of Lowe's were unchanged at $36.79 Friday on the New York Stock Exchange.