Home Depot (HD) shares fell despite a beaten earnings forecast on Tuesday as the retailer forecast a sharper decline in comparable store sales for fiscal 2024 than previously.

Home Depot reported net income of $4.56 billion on total revenue of $43.17 billion. Both figures were above analyst consensus estimates compiled by Visible Alpha. However, Home Depot’s revenue included $1.3 billion from six weeks of sales of SRS Distribution, whose $18.25 billion acquisition was completed during the quarter. Comparable sales worldwide fell 3.3 percent in the second quarter.

Forecast lowered due to “macroeconomic uncertainty”

“The underlying long-term fundamentals supporting demand for home improvement products are strong,” said Ted Decker, Chief Executive Officer (CEO) of Home Depot. “During the quarter, higher interest rates and greater macroeconomic uncertainty put pressure on consumer demand generally, resulting in lower spending on home improvement projects.”

Home Depot and its home improvement rival Lowe’s (LOW) have cited inflation and high interest rates as factors that have led to declining sales in recent quarters as consumers have postponed “big” projects and focused their spending on essentials.

Home Depot also adjusted its fiscal 2024 guidance. Total sales are expected to increase 2.5% to 3.5% from fiscal 2023 (up from 1% previously). SRS is expected to contribute about $6.4 billion to sales growth. However, comparable sales are expected to decline 3% to 4%, which is even worse than the previous forecast of a 1% decline.

Home Depot shares fell more than 2 percent to $337.69 in premarket trading on Tuesday. In a note, JPMorgan analysts said they would “buy on any weakness in the stock.”