Lowe’s Cos. posted weaker-than-expected quarterly results, but kept its outlook for same-store sales growth this year, assuring investors it will benefit once consumer demand picks up.

Shares of Lowe’s, the second-largest home improvement chain, rose 2.1 percent in early trading on Monday. Market leader Home Depot, which reports results on Tuesday, gained 1.3 percent.

Lowe’s said it still expected sales at stores open at least a year to rise about 2 percent for the fiscal year, which some analysts viewed as a good sign given persistently soft U.S. consumer sentiment.

JPMorgan analyst Christopher Horvers said Lowe’s should be able to meet that same-store sales goal as consumers resume projects to maintain or repair their homes.

"We await more discretionary larger-ticket projects" that would further accelerate same-store sales growth, he said in a research note.

Horvers also applauded Lowe’s for clearing inventory in the quarter, helping gross margin to rise slightly.

Net income rose to $832 million, or 58 cents a share, in the second quarter ended on July 30 from $759 million, or 51 cents a share, a year earlier.

Analysts on average were expecting 59 cents a share, according to Thomson Reuters I/B/E/S.

"We expect the ‘not so bad’ second-quarter results that Lowe’s reported today to alleviate growing market concerns of a significant deterioration in trends at the chain over the past few months," Oppenheimer analyst Brian Nagel said.

Lowe’s forecast current-quarter profit of 28 cents to 32 cents a share, while analysts were expecting 31 cents. The company said it expected a sales increase of 3 percent to 5 percent for the period.

Sales at Lowe’s lost some momentum during the second quarter due to the expiration of a U.S. homebuyer tax credit and cash for appliances programs. Both had helped results significantly in the first quarter.

Sales rose 3.8 percent to $14.36 billion, but missed Wall Street’s average estimate of $14.52 billion. Sales at stores open at least a year rose 1.6 percent.