NEW YORK (CNN/Money) - Home Depot Inc., the nation's No. 1 home improvement retailer, posted higher fiscal second-quarter income that topped analysts' estimates Tuesday, and reaffirmed guidance for fiscal year sales and earnings growth.

In the three months ended Aug. 3, the Atlanta-based retailer earned $1.3 billion, or 56 cents a share, up from $1.18 billion, or 50 cents a share, a year earlier. The latest-quarter profit exceeded earnings tracker First Call's consensus estimate of 54 cents a share.

Total sales rose 10.5 percent to $17.99 billion, which also topped the First Call forecast of $17.6 billion, putting the company second only to Wal-Mart Stores Inc. (WMT: Research, Estimates) in terms of revenue among retailers. Sales at stores open at least a year, a closely-watched measure known as same-store, gained 2.2 percent. The average sale per transaction edged up 1 percent to $50.60.

The company's gross profit, which reflects revenue less the cost of merchandise sold, increased 13.3 percent to $5.6 billion, while the gross profit as a percentage of revenue increased to 31.2 percent from 30.4 percent. But the operating profit margins were squeezed a bit by a 15 percent rise in operating expenses.

Home Depot also reaffirmed its guidance for the full fiscal year, saying sales will grow between 9 and 12 percent and diluted per-share earnings will rise between 9 and 14 percent. That would bring sales to between $63.5 billion and $65.2 billion and earnings per share between $1.70 and $1.78 a share. First Call's forecasts stand at $63.5 billion for revenue and EPS of $1.73.

Shares of Home Depot (HD: Research, Estimates), a Dow component, rose 36 cents to $33.90 Monday.