Home Depot (NYSE:HD) announced a less severe decline in third-quarter comparable sales than expected, but it has tightened its full-year financial outlook amidst reduced spending on large-scale projects due to high inflation and rising interest rates. Following the results, shares gained around 7% intra-day today.

For Q3, the Atlanta-based retailer reported a 3.1% decrease in comparable sales, slightly better than the Street prediction of a 3.31% drop. However, net earnings saw a 12.2% year-over-year decrease, totaling $3.81 billion.

CEO Ted Decker noted in a statement that the company experienced ongoing challenges in certain high-cost discretionary categories, as customers, wary of prices, shifted focus to smaller home improvement projects.

Reflecting a cautious stance, Home Depot has revised its fiscal 2023 projections. The company now anticipates sales and comparable sales to fall by 3% to 4% annually, a slight adjustment from the previously estimated range of 2% to 5%.

The forecast for diluted per-share earnings also reflects a downturn, with an expected decline of 9% to 11%, compared to the earlier forecast of a 7% to 13% decrease.