Lowe’s exceeded Wall Street’s quarterly earnings expectations, fueled by outdoor DIY projects, growth in its home professional business, and stronger online sales. Despite these positive results, the retailer is projecting a year-over-year decline in sales, updating its full-year guidance to $83 billion to $83.5 billion, slightly higher than previous forecasts. Comparable sales are expected to decline 3% to 3.5%, marking a modest improvement from earlier projections. Lowe’s continues to feel pressure in the home improvement market, with CEO Marvin Ellison noting a slowdown in discretionary DIY projects like kitchen or bathroom renovations amid high interest rates.

The fiscal third quarter saw net income fall to $1.7 billion, or $2.99 per share, compared to $1.77 billion, or $3.06 per share, in the prior year. Revenue dropped to $20.17 billion, driven by weaker demand for larger projects, offset partially by hurricane-related repairs and growth in sales to contractors. Meanwhile, competitor Home Depot also reported declining comparable sales but showed signs of improvement through warm-weather projects and hurricane demand. Lowe’s has focused on catering to small- and medium-sized contractors, achieving high single-digit growth in its pro business despite broader sales declines.