Home Depot Inc. forecast full-year earnings well below Wall Street estimates on Tuesday and reported disappointing quarterly sales, with analysts pointing to the impact of a snowy U.S. winter on construction activity.

Shares of the largest U.S. home improvement retailer (HD) fell less than 3 percent in early trade after the results, even as it announced $15 billion in share buybacks and a 32 percent increase to its dividend.

The results come during a slowdown in the U.S. housing market, with home sales falling to their lowest in more than three years and prices rising only modestly, according to data from last month.

Home Depot sells everything from windows and wooden planks to lawn mowers and patio furniture, but cold weather across the United States during December and January curtailed remodeling of home exteriors.

"We believe that wet weather was a major factor that impacted growth (exterior projects)," Credit Suisse analyst Seth Sigman said in a report.

Sales at U.S. Home Depot outlets open at least 52 weeks rose 3.7 percent in the three months ended Feb. 3, below analysts' average forecast of a 4.5 percent increase, according to IBES data from Refinitiv.

Quarterly sales overall jumped 11 percent to $26.49 billion, but missed estimates of $26.57 billion, while Home Depot's full-year earnings forecast of $10.03 per share was 23 cents less than analysts' average forecast.

Still, the company expects same-store sales to rise 5 percent this year, above the 4.45 percent increase analysts were expecting.

Its quarterly net earnings rose to $2.34 billion from $1.78 billion a year earlier.

Shares in smaller rival Lowe's, which is scheduled to report quarterly results on Wednesday, were down nearly 2 percent in early trade.