Tractor Supply Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
Did TSCO Beat Earnings? Q1 2025 Results
Tractor Supply delivered a disappointing start to fiscal 2025, missing on both the top and bottom lines as softer spring demand and cost pressures weighed on results. The farm and ranch retailer posted first-quarter revenue of $3.47 billion, up 2.1% year over year but falling short of the $3.53 billion consensus estimate by 1.85%, while diluted EPS of $0.34 missed the $0.37 consensus by 7.93% and represented an 8.0% decline from the prior-year period. The most material drag came from a 0.9% comparable store sales decline, itself driven by a 2.9% drop in average ticket as weakness in spring seasonal goods and big-ticket categories offset solid gains in everyday consumable products and transaction counts. SG&A expenses also deleveraged 81 basis points, reflecting fixed cost pressure and growth investments tied to a new distribution center. Looking ahead, management widened its full-year guidance range to account for tariff uncertainty, now projecting diluted EPS of $2.00 to $2.18, a notably wider and lower band than its prior $2.10 to $2.22 outlook, while pointing to its largely U.S.-sourced assortment as a buffer against further trade disruption.
- Strong comparable average transaction count growth of 2.1%
- Strength in consumable, usable and edible (CUE) products and winter seasonal merchandise
- New store openings contributed 2.8% of total sales
- Allivet acquisition contribution to net sales
- Gross margin expanded 25 basis points driven by disciplined product cost management and everyday low price strategy
- Exclusive brands grew to 30.7% of total sales from 29.7% year over year
“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.”
Tractor Supply CEO, on the earnings call
Forward Guidance & Outlook
Tractor Supply widened its fiscal year 2025 guidance amid increased tariff-related uncertainty. Updated full-year outlook: net sales growth of +4% to +8% (previously +5% to +7%), comparable store sales growth of 0% to +4% (previously +1% to +3%), operating margin rate of 9.5% to 9.9% (previously 9.6% to 10.0%), net income of $1.07 billion to $1.17 billion (previously $1.12 billion to $1.18 billion), and diluted EPS of $2.00 to $2.18 (previously $2.10 to $2.22). For Q2 2025, the company expects net sales growth of approximately 3% to 4%, comparable store sales growth of flat to +1%, and diluted EPS of $0.79 to $0.81. The company is actively working with vendor and supply chain partners to navigate tariff impacts while monitoring broader macroeconomic factors.
TSCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.