Lowe’s signaled a strong start to the fourth quarter after topping profit estimates, but followed Home Depot in projecting muted annual earnings and sales as budget-conscious Americans defer major home improvement projects.

The cautious outlook on Wednesday comes as U.S. households grapple with rising costs for everyday essentials, auto insurance and health care, while interest rates remain high and tariffs fuel economic uncertainty.

CEO Marvin Ellison noted that sales had picked up in November, led by demand for seasonal decor categories, tools and appliances.

Ellison’s quarter-to-date comment was notably upbeat compared to the company’s Atlanta-based rival’s more cautious tone a day earlier, J.P. Morgan analysts said, though Lowe’s full-year guidance still signals a conservative stance.

Adjusted earnings came in at $3.06 per share in the third quarter, topping estimates of $2.97.

Lowe’s now expects comparable sales to be flat year-on-year compared with the flat to up 1% range it forecast in August. It trimmed its full-year adjusted earnings per share forecast to about $12.25, compared with its prior target of $12.20 to $12.45.

Lowe’s has spent billions this year to buy Foundation Building Materials and Artisan Design Group to boost its appeal among professional contractors, mirroring a strategy pursued by Home Depot.

“We believe the market is looking through to the strategic value of the recent acquisitions…which provide Lowe’s with crucial exposure to the homebuilder segment,” CFRA analyst Arun Sundaram said.

Same-store sales edged up 0.4% in the quarter ended Oct. 31, missing analysts’ average estimate for a 1% increase, according to data compiled by LSEG.