Home Depot reported a sharp spike in quarterly profit on Tuesday amid a sluggish U.S. housing market that's prompting more homeowners to remodel their existing residences rather than move.

Sales at the Atlanta-based company grew 5.1 percent to $26.3 billion in the three months through October, supported by a 4.8 percent rise in stores open at least a year. Net income soared 32 percent to $2.9 billion, or $2.51 a share. The retailer now expects full-year profit of $9.75 per share, up from the $9.42 it previously forecast.

Chief Executive Officer Craig Menear attributed the growth to higher sales from both "professional and do-it-yourself customers." While new home sales are falling across the U.S. as higher prices make it more difficult for first-time buyers, Menear said Home Depot's earnings are "a testament to the overall strength of demand in the home improvement market."

President Trump's tariffs on $250 billion in products from China, as well as double-digit duties on imports of washing machines, steel and aluminum, represent "about 1 percent of U.S. purchases," Menear said.

That would increase to 3.5 percent should Trump follow through on his threat to hike the tariffs on China to 25 percent, up from the current 10 percent, and extend the duties to an additional $267 billion in imported products.

"We'll work to mitigate that as much as possible," Menear told investors. "You'll see some impact in pricing."

Home Depot also sped up some of its inventory purchases to avoid the existing tariffs, the company said.

Rival Lowe's, meanwhile, has been reorganizing around its most profitable operations. The company recently announced it would shut down 47 stores in the U.S. and Canada, after shuttering all its Orchard Supply Hardware locations. New Chief Executive Officer Marvin Ellison is also cutting inventory and refocusing the company's efforts to target professional home builders.

Home Depot's stock was down 1.15 percent to $177.50 per share in New York trading.