The top U.S. home improvement retailer's shares, up 18% this year, rose 2% in premarket trading as it posted a smaller-than-expected drop in third-quarter comparable sales.

Strom damage across the Southeast accounted for higher sales to contractors, and the chain also forecast stronger results as mortgage rates drop.

Home Depot forecast a smaller drop in annual same-store sales on Tuesday, benefiting from resilient demand from professional contractors, as well as a lift from hurricane-related spending. Shares of the top U.