(Reuters) – Home Depot said on Tuesday it expected a smaller-than-expected decline in its annual comparable sales, as the group benefited from resilient demand from professional contractors and expenses linked to recent hurricanes.

Comparable sales at the top U.S. home improvement chain are expected to decline 2.5% for fiscal 2024, compared with the previous range for a decline of 3% to 4%.

The group also published better-than-expected quarterly results on Tuesday, signaling a rebound in demand in anticipation of a drop in real estate interest rates.

Home Depot benefited from panic buying among Americans after Hurricanes Helen and Milton hit the southeastern United States in September and October, respectively.

“As the weather normalized, we saw better engagement for seasonal products and some outdoor projects, as well as additional demand-driven sales for hurricanes,” Chief Executive Officer Ted Decker said in a statement.

Home Depot posted a 1.3% decline in comparable sales in the quarter, its eighth consecutive quarter of decline, while analysts on average had expected a 3.25% decline, according to data compiled by LSEG.

The group has also doubled its investments to attract “professional” customers, notably by purchasing the construction store group SRS for $18.25 billion (17.19 billion euros) in March.

Earnings per share came in at $3.67, beating the consensus of $3.64.

Home Depot shares gained 2.7% in pre-market trading.

(Written by Savyata Mishra in Bangalore; Etienne Breban; edited by Blandine Hénault)

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