Tractor Supply Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did TSCO Beat Earnings? Q2 2025 Results
Tractor Supply delivered a clean beat in Q2 2025, with the rural lifestyle retailer posting diluted EPS of $0.81, edging past the $0.80 consensus estimate by 0.95%, while revenue of $4.44 billion topped expectations by 0.98% and grew 4.5% year-over-year. The primary engine behind the quarter was a 1.5% comparable store sales gain, a meaningful reversal from the 0.5% decline in the year-ago period, driven by strength in consumable, usable and edible products and spring seasonal categories despite a delayed spring season. Gross margin expanded 30 basis points to 36.9%, reflecting disciplined cost management, though SG&A as a percentage of sales crept higher as the company continued investing in growth. Looking ahead, management reaffirmed full-year 2025 guidance for net sales growth of 4% to 8% and diluted EPS of $2.00 to $2.18, and announced plans to open 100 new stores in 2026, targeting a long-term footprint of 3,200 locations as the company leans into its loyalty-driven, largely U.S.-sourced model amid ongoing tariff uncertainty.
- Continued momentum in year-round consumable, usable and edible (C.U.E.) products
- Solid demand for spring seasonal items despite delayed spring
- Positive performance in apparel, gift and décor, and big ticket items
- New store openings drove net sales growth (24 Tractor Supply and 2 Petsense stores opened in Q2)
- Comparable store sales increased 1.5% with comparable average transaction count increase of 1.0% and average ticket growth of 0.5%
- Disciplined product cost management driving gross margin expansion of 30 basis points to 36.9%
- Exclusive brands grew to 27.6% of total sales from 26.7% in prior year
“We are pleased with our second quarter performance, reflecting the continued strength of our core categories and strong execution despite a delayed spring. Our team delivered solid results by capturing market share and curating a product assortment that underscores our leadership in rural retail. I want to thank our 52,000 Team Members whose passion for Life Out Here and commitment to our customers make all the difference every day.”
Tractor Supply CEO, on the earnings call
Forward Guidance & Outlook
Tractor Supply reaffirmed its fiscal year 2025 financial guidance: net sales growth of +4% to +8%, comparable store sales of flat to +4%, operating margin rate of 9.5% to 9.9%, net income of $1.07 billion to $1.17 billion, and diluted EPS of $2.00 to $2.18. The company revised its full-year share repurchase expectation downward to $325 million to $375 million, reflecting a more measured pace and disciplined capital allocation approach. Management expressed confidence in the durability of the business model despite economic uncertainty and shifting tariffs, citing a largely U.S.-sourced assortment, strong vendor partnerships, and a flexible supply chain.
TSCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.