Home Depot’s net income declined to $2.57 billion from $3.0 billion a year ago|Mike Mozart|CC BY 2.0

Home Depot reported a 4% drop in quarterly sales as a weak housing market and cautious spending hurt demand for renovations.

Revenue fell to $38.20 billion from $39.70 billion a year earlier, but still beat Wall Street estimates of $38.12 billion. Adjusted earnings per share came in at $2.72, topping expectations of $2.54.

Net income declined to $2.57 billion, or $2.58 per share, from $3.0 billion a year ago. 

Shares rose 2% to $384.48, valuing the company at about $382.8 billion.

Management expects full-year sales growth of 2.5% to 4.5%. Executives said high interest rates and concerns about housing affordability continue to pressure customers, even as the spring selling season approaches.

CEO Ted Decker told CNBC that the retailer is analysing what the Supreme Court’s striking down of President Donald Trump’s tariffs and his proposed 15% across-the-board levies would mean for Home Depot.