Lowe’s (NYSE:LOW) delivered an unexpected rise in fourth-quarter comparable sales, as its dual focus on retail and professional customers helped it gain market share in the competitive home improvement sector. As a result, the company’s shares rose more than 3% intra-day today.

The company's strategy, aimed at competing more aggressively with larger rival Home Depot, is gaining traction, according to CEO Marvin Ellison. Quarterly comparable sales edged up 0.2%, defying expectations of a 1.82% decline.

Lowe’s also exceeded top and bottom-line estimates, posting net sales of $18.55 billion and adjusted earnings per share of $1.99, both topping analyst projections.

Looking ahead to fiscal year 2025, the company expects total sales between $83.5 billion and $84.5 billion, slightly below the $84.63 billion analyst forecast. Comparable sales are projected to be flat to up 1%, falling short of the 1.4% growth analysts anticipated.

Meanwhile, Lowe’s set its annual diluted earnings per share guidance at $12.15 to $12.40, trailing Wall Street’s $12.50 consensus estimate.