Home Depot (HD) reported second quarter earnings before the market open on Tuesday that slightly missed Wall Street's estimates.

At the same time, the retail giant marked a return to consistent same-store sales growth in the US amid signs that a prolonged slump in the US housing market is starting to thaw.

Revenue was $45.27 billion, versus the $45.41 billion expected, per Reuters. Adjusted earnings per share came in at $4.68, $0.04 less than the expected $4.72.

For the second time this year, Home Depot reiterated its annual forecast, saying it expected net sales to grow by 2.8% and same-store sales to increase by 1% for the full fiscal year.

Shares in the home improvement chain initially slipped in premarket after the report, but recouped some ground as investors scrutinized the release.

Its same-store sales grew 1.0%, slightly less than the 1.4% Wall Street expected, according to Bloomberg data. Same-store sales fell 0.3% in the first quarter, a reversal from the fourth quarter's 0.8% uptick. Global same-store sales had declined in eight straight quarters before the uptick in Q4.

In the US, same-store sales were up 1.4%, a tick lower than the 1.6% Wall Street expected. That marks the third straight quarter of positive comps in Home Depot's home market. The company hasn't reported three consecutive quarters of US same-store sales growth since the third quarter of 2022.

Ticket growth was flat, while transaction growth fell slightly.

Chair and CEO Ted Decker called the results "in line" with its expectations in the release.

He added, "The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects."

CFO Richard McPhail said the retailer has its eyes on the interest rate cut widely expected to come soon. But it is still waiting to see whether the cut will feed into change on borrowing rates that matter to consumers, like mortgage rates, he told Yahoo Finance.

"They [rates] are still quite elevated, relative to recent history, and we know that is leading our customers to defer large projects. It's hard to say what rates may have to do to unlock that spend on large projects, but our customers do tell us they're deferring, they're not canceling. So either rates decrease, or we all get used to this as a new normal," he said.

Home Depot did not provide Q3 guidance. In the prior quarter though, executive vice president of merchandising Billy Bastek said the chain has not stockpiled inventory due to tariffs like some retailers, but "in-stock rates have never been better."

Some prices will go up, though, according to McPhail.

“For some imported goods, tariff rates are higher today than they were when we reported our first quarter," McPhail said. "While we won't see broad based price movement across our assortment, there will be some modest price movement in some categories."

Home Depot stock has been moving higher ahead of this report as interest rates have moderated in anticipation of the Federal Reserve likely cutting rates in September. Shares have gained around 10% in the last month, while rival Lowe's (LOW) has seen its stock rise roughly 15%.

"While the macro remains choppy, we expect Home Depot to see continued share gains as it accelerates growth and capabilities with the complex pro, both organically and inorganically," Bank of America analyst Robert Ohmes wrote in a recent note.

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

Click here for all of the latest retail stock news and events to better inform your investing strategy