Tractor Supply Company Reports First Quarter 2025 Financial Results; Provides Second Quarter Guidance and Widens Fiscal Year 2025 Sales Range

Tractor Supply Company, the largest rural lifestyle retailer in the United States (the “Company”), reported financial results for its first quarter ended March 29, 2025.

• Net Sales Increased 2.1% to $3.47 Billion
• Comparable Store Sales Decreased 0.9%; Strong Comparable Average Transaction Growth of 2.1%
• Diluted Earnings per Share (“EPS”) of $0.34

“As the year unfolds amid increasing volatility, our conviction in Tractor Supply’s resilient and durable business model remains strong. We have a long track record of navigating uncertain environments, and we believe we are well-positioned to do so once again. Tractor Supply is uniquely differentiated by our needs-based product categories, our predominantly U.S.-sourced assortment, deep and trusted vendor relationships and a nimble, scalable supply chain,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

“Since issuing our initial 2025 outlook, there has been a notable increase in uncertainty, in particular the introduction of new tariffs. In response, we are updating the range of our full-year outlook and providing guidance for the second quarter. I am deeply appreciative of our 52,000 Team Members for their unwavering dedication and passion for Life Out Here.”

First Quarter 2025 Results

Net sales for the first quarter of 2025 increased 2.1% to $3.47 billion from $3.39 billion in the first quarter of 2024. The increase in net sales was driven by new store openings and the contribution from Allivet, partially offset by a decrease in comparable store sales. Comparable store sales decreased 0.9%, as compared to an increase of 1.1% in the prior year’s first quarter. The strong growth in comparable average transaction count increase of 2.1% was offset by a comparable average ticket decline of 2.9%. Comparable average transaction growth reflects strength in year-round categories including consumable, usable and edible products and winter seasonal merchandise. This growth was offset by declines in spring seasonal goods including related big ticket categories.

Gross profit increased 2.8% to $1.26 billion from $1.22 billion in the prior year’s first quarter, and gross margin increased 25 basis points to 36.2% from 36.0% in the prior year’s first quarter. The gross margin rate increase was primarily attributable to disciplined product cost management and the continued execution of an everyday low price strategy.

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 5.1% to $1.01 billion from $957.7 million in the prior year’s first quarter. As a percentage of net sales, SG&A expenses increased 81 basis points to 29.0% from 28.2% in the first quarter of 2024. The increase in SG&A as a percent of net sales was primarily attributable to planned growth investments, which included higher depreciation and amortization and the operations of the Company’s 10th distribution center, and deleverage of fixed costs given the comparable store sales decline. These factors were partially offset by an ongoing focus on productivity and cost control, as well as a modest benefit from the Company’s ongoing sale-leaseback strategy.

Operating income decreased 5.3% to $249.1 million from $263.1 million in the first quarter of 2024.

The effective income tax rate was 21.8% compared to 21.1% in the first quarter of 2024.

Net income decreased 9.5% to $179.4 million from $198.2 million. Diluted EPS decreased 8.0% to $0.34 compared to $0.37 in the first quarter of 2024.

The Company repurchased approximately 1.7 million shares of its common stock for $94.0 million and paid quarterly cash dividends totaling $122.4 million, returning a total of $216.4 million of capital to shareholders in the first quarter of 2025.

The Company opened 15 new Tractor Supply stores and two new Petsense by Tractor Supply stores and closed two Petsense by Tractor Supply stores in the first quarter of 2025.

Fiscal Year 2025 Financial Outlook

Tractor Supply is updating its financial guidance for fiscal year 2025. This outlook is based on year-to-date performance and what the Company can reasonably predict at this time. Tractor Supply is actively working with its vendor and supply chain partners to navigate the impact of recently announced tariffs, while also monitoring the broader macroeconomic factors impacting its customers.

Given the increased market uncertainty, the Company is providing second quarter 2025 guidance: net sales growth of approximately 3% to 4%, comparable store sales growth to be in the range of flat to up 1% and earnings per diluted share between $0.79 and $0.81.

Tractor Supply’s Chief Financial Officer Kurt Barton commented, “With more than two and a half decades of experience with Tractor Supply, I have seen the Company navigate multiple business cycles. We know the playbook and are committed to our results standing tall in retail. We are closely monitoring consumer demand indicators and forward-looking signals. Tractor Supply’s long-standing track record of resilience and success positions us as a leader in the retail sector, ready to seize the market share opportunities ahead and continue to deliver shareholder value.”

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About Tractor Supply Company

For more than 85 years, Tractor Supply Company (NASDAQ: TSCO) has been passionate about serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts and all those who enjoy living Life Out Here. Tractor Supply is the largest rural lifestyle retailer in the U.S., ranking 293 on the Fortune 500. The Company’s more than 50,000 Team Members are known for delivering legendary service and helping customers pursue their passions, whether that means being closer to the land, taking care of animals or living a hands-on, DIY lifestyle. In store and online, Tractor Supply provides what customers need – anytime, anywhere, any way they choose at the low prices they deserve.

As of June 29, 2024, the Company operated 2,254 Tractor Supply stores in 49 states. For more information on Tractor Supply, visit www.tractorsupply.com .

Tractor Supply Company also owns and operates Petsense by Tractor Supply, a small-box pet specialty supply retailer providing products and services for pet owners. As of June 29, 2024, the Company operated 205 Petsense by Tractor Supply stores in 23 states. For more information on Petsense by Tractor Supply, visit www.Petsense.com .

Contact:

Mary Winn Pilkington – Media Contact – corporatecommunications@tractorsupply.com – (615) 440-4212

Source: Tractor Supply Company