Cotati, California – Lowe’s reported a year-over-year increase in sales for its recent quarter, yet the home improvement chain has adjusted its full-year profit projections to reflect ongoing economic challenges. The retailer has revised its anticipated total sales to $86 billion, an upward revision attributed to a recent acquisition, while expectations for comparable sales now remain unchanged from last year.

The company now anticipates adjusted earnings per share of approximately $12.25, slightly lower than its previous estimate, which ranged from $12.20 to $12.45. This revision comes as Lowe’s seeks to navigate an uncertain economic landscape, compounded by its acquisition of Foundation Building Materials, finalized last month.

For the fiscal third quarter, Lowe’s reported earnings that slightly exceeded Wall Street forecasts. It achieved an adjusted earnings per share of $3.06, surpassing analysts’ expectations of $2.97, although its revenue of $20.81 billion fell just short of the $20.82 billion projection. Shares of Lowe’s saw an increase of more than 5% in pre-market trading after the announcement.

Lowe’s CEO Marvin Ellison emphasized that the company has seen positive comparable sales trends despite facing significant challenges, such as last year’s hurricane-related impacts. For the quarter, comparable sales were up by 0.4%. However, the broader home improvement sector continues to grapple with a sluggish housing market and rising interest rates, which have pressured consumer spending for over two years.

During the three months ending Oct. 31, Lowe’s posted a net income of $1.62 billion, or $2.88 per share, compared to $1.7 billion, or $2.99 per share, from the same quarter last year. Revenue grew from $20.17 billion a year prior. When adjusted for one-time expenses linked to acquisitions, earnings remained at $3.06 per share.

In a parallel development, rival Home Depot also revised its profit outlook recently after falling short of quarterly earnings expectations for the third consecutive time. The company’s CFO attributed the decline to reduced storm activity, the challenging housing market, and consumer hesitancy.

To counteract weaker sales in the do-it-yourself segment, both Lowe’s and Home Depot have sought to increase their appeal to contractors and other professionals in the home services market. Earlier this year, Lowe’s announced the acquisition of Artisan Design Group for nearly $1.33 billion, a transaction aimed at enhancing its offerings to builders and property managers.

These strategic moves come in a context where Lowe’s CFO had indicated that the company’s sales strategy and not market conditions would primarily drive its performance amid expectations of a flattish home improvement sector. As market dynamics continue to evolve, Lowe’s remains focused on navigating these challenges while seeking new avenues for growth.