Tractor Supply Company (TSCO) Announces First Quarter 2025 Financial Earnings Results; Provides Second Quarter Guidance And Widens Fiscal Year 2025 Sales Range

Tractor Supply Company (TSCO) today announced its financial results for the latest quarter. The company reported earnings per share (EPS) that met analyst expectations, with an EPS estimate of $0.37. This performance highlights Tractor Supply’s consistent financial stability and its ability to meet market forecasts.

Key Highlights:

• Tractor Supply Company reported a 2.1% increase in net sales for Q1 2025, reaching $3.47 billion.
• Comparable store sales decreased by 0.9%, but there was a 2.1% growth in comparable average transaction count.
• Gross profit increased by 2.8% to $1.26 billion, with a gross margin increase of 25 basis points to 36.2%.
• Operating income decreased by 5.3% to $249.1 million, and net income decreased by 9.5% to $179.4 million.
• The company repurchased 1.7 million shares for $94.0 million and paid $122.4 million in dividends.
• Tractor Supply updated its fiscal year 2025 guidance, with net sales expected to grow by 4% to 8% and earnings per diluted share projected between $2.00 and $2.18.
• Second quarter 2025 guidance includes net sales growth of 3% to 4% and earnings per diluted share between $0.79 and $0.81.
• The company opened 15 new Tractor Supply stores and two new Petsense stores, while closing two Petsense stores.
• Exclusive brands made up 30.7% of total sales in 2025, up from 29.7% in 2024.

Summary:

Tractor Supply Company, the largest rural lifestyle retailer in the U.S., reported a 2.1% increase in net sales for the first quarter of 2025, totaling $3.47 billion. Despite a decrease in comparable store sales by 0.9%, the company saw a strong growth in comparable average transaction count by 2.1%. Gross profit rose by 2.8% to $1.26 billion, with a slight increase in gross margin to 36.2%. However, operating income and net income saw declines of 5.3% and 9.5%, respectively. The company continued its shareholder return strategy by repurchasing shares and paying dividends, totaling $216.4 million in capital returned to shareholders. Additionally, Tractor Supply expanded its footprint by opening 15 new Tractor Supply stores and two new Petsense stores, while closing two Petsense locations.

Looking ahead, Tractor Supply updated its fiscal year 2025 guidance, anticipating net sales growth between 4% and 8% and earnings per diluted share ranging from $2.00 to $2.18. The company also provided guidance for the second quarter of 2025, expecting net sales growth of 3% to 4% and earnings per diluted share between $0.79 and $0.81. CEO Hal Lawton expressed confidence in the company’s resilient business model, highlighting its strong vendor relationships and scalable supply chain as key strengths in navigating market uncertainties, including new tariffs. CFO Kurt Barton emphasized the company’s experience in managing business cycles and its commitment to maintaining a strong retail presence. Exclusive brands also saw a rise in their contribution to total sales, making up 30.7% in 2025 compared to 29.7% in the previous year.

Tractor Supply Company (TSCO) has experienced a mixed bag of price changes over the past year, with a modest annual increase of 0.69% despite a more turbulent short-term performance. Over the past three months, the stock has seen a significant decline of 11.23%, and a six-month drop of 12.47%, indicating some volatility and investor uncertainty. However, the recent one-week uptick of 2.78% suggests a potential rebound or positive market sentiment. On the fundamental side, TSCO boasts a healthy price-to-earnings ratio of 24.82, reflecting investor confidence in its earnings potential. The company’s return on invested capital stands at a robust 16.52%, showcasing efficient use of capital to generate profits. With a net profit margin of 7.27%, TSCO demonstrates solid profitability, further supported by a strong free cash flow two-year compound annual growth rate (CAGR) of 4.46%. Despite recent price fluctuations, these metrics suggest that Tractor Supply Company maintains a strong financial foundation, which could appeal to long-term investors.

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. It provides its products under the 4health, Producer’s Pride, American Farmworks, Red Shed, Bit & Bridle, Redstone, Blue Mountain, Retriever, C.E. Schmidt, Ridgecut, Countyline, Royal Wing, Dumor, Strive, Groundwork, Traveller, Huskee, Treeline, JobSmart, TSC Tractor Supply Co, Paws & Claws, and Untamed brands. As of June 25, 2022, it operated 2,016 Tractor Supply stores in 49 states; and 178 Petsense stores in 23 states. The company operates its retail stores under the Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. The company was founded in 1938 and is based in Brentwood, Tennessee.