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Tractor Supply Company Reports Third Quarter 2025 Financial Results; Narrows Fiscal Year 2025 Guidance Range

Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today reported financial results for its third quarter ended September 27, 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251023053737/en/

  • Net Sales Increased 7.2% to a Record $3.72 Billion
  • Comparable Store Sales Increased 3.9%; Comparable Average Transaction Growth of 2.7%
  • Diluted Earnings per Share (“EPS”) of $0.49

“The Tractor Supply team delivered a strong third quarter. This performance was driven by ongoing share gains, agile execution through an extended summer season and healthy transaction growth,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply. “Our results were in line with our expectations and reflect the unwavering commitment of our 52,000 Team Members who live Life Out Here every day.”

“As we enter the fourth quarter, we are well positioned for the fall and winter seasons, operating with discipline and controlling what we can control. With improved visibility on tariffs and the broader demand environment, we are narrowing our full-year guidance range to reflect our year-to-date performance and a balanced outlook. We are encouraged by the early momentum in our Life Out Here 2030 strategic initiatives — enhancing the customer experience, expanding our capabilities and strengthening our foundation for long-term growth.”

Third Quarter 2025 Results

Net sales for the third quarter of 2025 increased 7.2% to $3.72 billion from $3.47 billion in the third quarter of 2024. The increase in net sales was driven primarily by the growth in comparable store sales, as well as new store openings and the contribution from Allivet. Comparable store sales increased 3.9%, as compared to a decrease of 0.2% in the prior year’s third quarter, reflecting a comparable average transaction count increase of 2.7% and comparable average ticket growth of 1.2%. Comparable store sales growth was driven by strength in spring and summer seasonal products and continued momentum in core categories, especially consumable, usable and edible (C.U.E.) products.

Gross profit increased 7.7% to $1.39 billion from $1.29 billion in the prior year’s third quarter. Gross margin rate increased 15 basis points to 37.4% from 37.2% in the prior year’s third quarter. Gross margin improvement from the Company’s ongoing focus on product cost management and the continued execution of an everyday low price strategy was partially offset by tariff costs and higher transportation costs.

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 8.4% to $1.05 billion from $965.8 million in the prior year’s third quarter. As a percentage of net sales, SG&A expenses increased to 28.1% from 27.8% in the third quarter of 2024. The increase in SG&A as a percent of net sales was primarily attributable to planned investments, as well as the timing of higher incentive compensation as the Company lapped lower accruals in the prior year and a lower sale-leaseback benefit, consistent with expectations. These factors were partially offset by an ongoing focus on productivity and fixed cost leverage.

Operating income increased 5.6% to $342.7 million from $324.6 million in the third quarter of 2024.

The effective income tax rate was 21.0% compared to 22.3% in the third quarter of 2024, primarily reflecting the timing of certain tax planning initiatives that the Company expects to normalize over the full year.

Net income increased 7.4% to $259.3 million from $241.5 million. Diluted EPS increased 8.6% to $0.49 compared to $0.45 in the third quarter of 2024.

The Company repurchased approximately 1.3 million shares of its common stock for $75.4 million and paid quarterly cash dividends totaling $121.9 million, returning a total of $197.3 million of capital to shareholders in the third quarter of 2025.

The Company opened 29 new Tractor Supply stores and closed one Petsense by Tractor Supply store in the third quarter of 2025.

Fiscal Year 2025 Financial Outlook

Based on year-to-date performance and a comparable store sales outlook of +1% to +5% for the fourth quarter, Tractor Supply is narrowing its financial guidance for fiscal year 2025:

 

       

Updated

       

Previous

Net Sales

       

+4.6% to +5.6%

       

+4% to +8%

Comparable Store Sales

       

+1.4% to +2.4%

       

+0% to +4%

Operating Margin Rate

       

9.5% to 9.7%

       

9.5% to 9.9%

Net Income

       

$1.09 billion to $1.14 billion

       

$1.07 billion to $1.17 billion

Earnings per Diluted Share

       

$2.06 to $2.13

       

$2.00 to $2.18

Conference Call Information

Tractor Supply Company will hold a conference call today, Thursday, October 23, 2025 at 10 a.m. ET. The call will be webcast live at IR.TractorSupply.com. An investor presentation will be available on the investor relations section of the Company’s website at least 15 minutes prior to the conference call.

Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the webcast.

A replay of the webcast will also be available at IR.TractorSupply.com shortly after the conference call concludes.

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 296 on the Fortune 500. The Company’s more than 52,000 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 part of the Company’s commitment to caring for animals of all kinds, Tractor Supply is proud to include Petsense by Tractor Supply, a pet specialty retailer, and Allivet, a leading online pet pharmacy, in its family of brands. Together, Tractor Supply is able to provide comprehensive solutions for pet care, livestock wellness and rural living, ensuring customers and their animals thrive. From its stores to the customer’s doorstep, Tractor Supply is here to serve and support Life Out Here.

As of September 27, 2025, the Company operated 2,364 Tractor Supply stores in 49 states and 206 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, including statements regarding market share gains, value creation, customer trends, new stores and distribution centers, property development plans, return of capital, financial guidance for fiscal 2025, including net sales, comparable store sales, operating margin rates, net income, earnings per diluted share and sale-leaseback transactions. All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are subject to the finalization of the Company’s quarterly financial and accounting procedures, and may be affected by certain risks and uncertainties, any one, or a combination, of which could materially affect the results of the Company’s operations. Forward-looking statements are usually identified by or are associated with such words as “will,” “would,” “intend,” “expect,” “continue,” “believe,” “anticipate,” “optimistic,” “forecasted” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. As with any business, all phases of our operations are subject to facts outside of our control. These factors include, without limitation, the impact of the changes in tariffs and the corresponding macroeconomic pressures and those factors discussed in the “Risk Factors” section of the Company’s Annual Reports or Form 10-K and other filings with the Securities and Exchange Commission. Forward-looking statements made by or on behalf of the Company are based on knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and those contained in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

(Financial tables to follow)

 
 
 

Consolidated Statements of Income

(Unaudited)

(in thousands, except per share and percentage data)
 

 

 

Three Months Ended

 

Nine Months Ended

 

September 27,

2025

 

September 28,

2024

 

September 27,

2025

 

September 28,

2024

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

Net

 

 

 

Net

 

 

 

Net

 

 

 

Net

 

 

 

Sales

 

 

 

Sales

 

 

 

Sales

 

 

 

Sales

Net sales

$

3,719,044

 

100.00%

 

$

3,468,245

 

100.00%

 

$

11,625,726

 

100.00%

 

$

11,109,700

 

100.00%

Cost of merchandise sold

 

2,329,812

 

62.65

 

 

2,177,797

 

62.79

 

 

7,341,097

 

63.15

 

 

7,042,773

 

63.39

Gross profit

 

1,389,232

 

37.35

 

 

1,290,448

 

37.21

 

 

4,284,629

 

36.85

 

 

4,066,927

 

36.61

Selling, general and administrative expenses

 

922,454

 

24.80

 

 

852,299

 

24.57

 

 

2,748,723

 

23.64

 

 

2,590,637

 

23.32

Depreciation and amortization

 

124,069

 

3.34

 

 

113,550

 

3.27

 

 

366,248

 

3.15

 

 

327,107

 

2.94

Operating income

 

342,709

 

9.21

 

 

324,599

 

9.36

 

 

1,169,658

 

10.06

 

 

1,149,183

 

10.34

Interest expense, net

 

14,667

 

0.39

 

 

13,875

 

0.40

 

 

52,291

 

0.45

 

 

37,389

 

0.34

Income before income taxes

 

328,042

 

8.82

 

 

310,724

 

8.96

 

 

1,117,367

 

9.61

 

 

1,111,794

 

10.01

Income tax expense

 

68,774

 

1.85

 

 

69,254

 

2.00

 

 

248,687

 

2.14

 

 

246,960

 

2.22

Net income

$

259,268

 

6.97%

 

$

241,470

 

6.96%

 

$

868,680

 

7.47%

 

$

864,834

 

7.78%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (a)

$

0.49

 

 

 

$

0.45

 

 

 

$

1.64

 

 

 

$

1.61

 

 

Diluted (a)

$

0.49

 

 

 

$

0.45

 

 

 

$

1.63

 

 

 

$

1.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (a)

 

529,742

 

 

 

 

535,836

 

 

 

 

530,601

 

 

 

 

538,070

 

 

Diluted (a)

 

532,143

 

 

 

 

538,390

 

 

 

 

532,816

 

 

 

 

540,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share outstanding (a)

$

0.23

 

 

 

$

0.22

 

 

 

$

0.69

 

 

 

$

0.66

 

 

(a)

All share and per share information has been adjusted to reflect the five-for-one Stock Split effective December 20, 2024.

 

 

Note: Percent of net sales amounts may not sum to totals due to rounding.
 
 
 
 

Consolidated Statements of Comprehensive Income

(Unaudited)

(in thousands)
 

 

 

Three Months Ended

 

Nine Months Ended

 

September 27,

2025

 

September 28,

2024

 

September 27,

2025

 

September 28,

2024

Net Income

$

259,268

 

$

241,470

 

 

$

868,680

 

 

$

864,834

 

Other comprehensive loss:

 

 

 

 

 

 

 

Change in fair value of interest rate swaps, net of taxes

 

 

 

(2,130

)

 

 

(1,217

)

 

 

(4,243

)

Total other comprehensive loss

 

 

 

(2,130

)

 

 

(1,217

)

 

 

(4,243

)

Total comprehensive income

$

259,268

 

$

239,340

 

 

$

867,463

 

 

$

860,591

 

 
 
 
 

Consolidated Balance Sheets

(Unaudited)

(in thousands)
 

 

 

September 27,

2025

 

September 28,

2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

184,639

 

 

$

186,294

 

Inventories

 

3,252,825

 

 

 

3,082,519

 

Prepaid expenses and other current assets

 

209,652

 

 

 

199,967

 

Income taxes receivable

 

 

 

 

14,381

 

Total current assets

 

3,647,116

 

 

 

3,483,161

 

Property and equipment, net

 

3,018,254

 

 

 

2,632,895

 

Operating lease right-of-use assets

 

3,743,029

 

 

 

3,295,678

 

Goodwill and other intangible assets

 

399,297

 

 

 

269,520

 

Other assets

 

68,906

 

 

 

86,643

 

Total assets

$

10,876,602

 

 

$

9,767,897

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,549,176

 

 

$

1,349,817

 

Accrued employee compensation

 

56,431

 

 

 

53,065

 

Other accrued expenses

 

734,405

 

 

 

551,847

 

Current portion of finance lease liabilities

 

4,512

 

 

 

3,402

 

Current portion of operating lease liabilities

 

416,922

 

 

 

387,578

 

Income taxes payable

 

40,856

 

 

 

 

Total current liabilities

 

2,802,302

 

 

 

2,345,709

 

Long-term debt

 

1,744,223

 

 

 

1,831,218

 

Finance lease liabilities, less current portion

 

28,950

 

 

 

28,831

 

Operating lease liabilities, less current portion

 

3,527,699

 

 

 

3,082,653

 

Deferred income taxes

 

53,288

 

 

 

48,800

 

Other long-term liabilities

 

146,955

 

 

 

141,926

 

Total liabilities

 

8,303,417

 

 

 

7,479,137

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock (a)

 

7,127

 

 

 

7,114

 

Additional paid-in capital (a)

 

1,420,706

 

 

 

1,356,772

 

Treasury stock

 

(6,267,791

)

 

 

(5,869,286

)

Accumulated other comprehensive income

 

 

 

 

2,550

 

Retained earnings

 

7,413,143

 

 

 

6,791,610

 

Total stockholders’ equity

 

2,573,185

 

 

 

2,288,760

 

Total liabilities and stockholders’ equity

$

10,876,602

 

 

$

9,767,897

 

(a)

Common stock and Additional paid-in capital balances have been adjusted to reflect the five-for-one Stock Split effective December 20, 2024.

 
 
 
 

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)
 

 

 

Nine Months Ended

 

September 27,

2025

 

September 28,

2024

Cash flows from operating activities:

 

 

 

Net income

$

868,680

 

 

$

864,834

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

366,248

 

 

 

327,107

 

(Gain)/loss on disposition of property and equipment

 

(66,046

)

 

 

(38,751

)

Share-based compensation expense

 

41,290

 

 

 

35,124

 

Deferred income taxes

 

16,756

 

 

 

(21,212

)

Change in assets and liabilities:

 

 

 

Inventories

 

(394,426

)

 

 

(436,665

)

Prepaid expenses and other current assets

 

(8,357

)

 

 

9,092

 

Accounts payable

 

301,773

 

 

 

170,014

 

Accrued employee compensation

 

(44,722

)

 

 

(38,413

)

Other accrued expenses

 

109,973

 

 

 

(227

)

Income taxes

 

57,818

 

 

 

(11,920

)

Other

 

61,438

 

 

 

44,627

 

Net cash provided by operating activities

 

1,310,425

 

 

 

903,610

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(629,213

)

 

 

(538,018

)

Proceeds from sale of property and equipment

 

92,238

 

 

 

77,895

 

Acquisition of Allivet, net of cash acquired

 

(139,895

)

 

 

 

Net cash used in investing activities

 

(676,870

)

 

 

(460,123

)

Cash flows from financing activities:

 

 

 

Borrowings under debt facilities

 

2,190,000

 

 

 

585,000

 

Repayments under debt facilities

 

(2,280,000

)

 

 

(485,000

)

Principal payments under finance lease liabilities

 

(3,048

)

 

 

(1,317

)

Repurchase of shares to satisfy tax obligations

 

(15,696

)

 

 

(23,618

)

Repurchase of common stock

 

(244,010

)

 

 

(406,663

)

Net proceeds from issuance of common stock

 

18,591

 

 

 

32,516

 

Cash dividends paid to stockholders

 

(366,244

)

 

 

(355,182

)

Net cash used in financing activities

 

(700,407

)

 

 

(654,264

)

Net decrease in cash and cash equivalents

 

(66,852

)

 

 

(210,777

)

Cash and cash equivalents at beginning of period

 

251,491

 

 

 

397,071

 

Cash and cash equivalents at end of period

$

184,639

 

 

$

186,294

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

Cash paid during the period for:

 

 

 

Interest, net of amounts capitalized

$

41,009

 

 

$

36,433

 

Income taxes

$

55,449

 

 

$

278,273

 

 

 

 

 

Supplemental disclosures of non-cash activities:

 

 

 

Non-cash accruals for property and equipment

$

123,631

 

 

$

75,332

 

Increase in operating lease liabilities resulting from new or modified right-of-use assets

$

629,056

 

 

$

442,399

 

Increase in finance lease liabilities resulting from new or modified right-of-use assets

$

4,289

 

 

$

 

 
 
 
 

Selected Financial and Operating Information

(Unaudited)
 

 

 

Three Months Ended

 

Nine Months Ended

 

September 27,

2025

 

September 28,

2024

 

September 27,

2025

 

September 28,

2024

Sales Information:

 

 

 

 

 

 

 

Comparable store sales increase/(decrease)

 

3.9

%

 

 

(0.2

)%

 

 

1.5

%

 

 

%

New store sales (% of total sales)

 

3.1

%

 

 

2.0

%

 

 

2.9

%

 

 

2.0

%

Average transaction value

$

59.48

 

 

$

58.87

 

 

$

60.18

 

 

$

60.48

 

Comparable store average transaction value increase/ (decrease) (a)

 

1.2

%

 

 

(0.5

)%

 

 

(0.3

)%

 

 

(0.2

)%

Comparable store average transaction count increase/(decrease)

 

2.7

%

 

 

0.3

%

 

 

1.9

%

 

 

0.3

%

Total selling square footage (000’s)

 

40,253

 

 

 

38,668

 

 

 

40,253

 

 

 

38,668

 

Exclusive brands (% of total sales)

 

29.2

%

 

 

29.1

%

 

 

29.4

%

 

 

28.8

%

Imports (% of total sales)

 

9.8

%

 

 

10.4

%

 

 

10.7

%

 

 

10.8

%

 

 

 

 

 

 

 

 

Store Count Information:

 

 

 

 

 

 

 

Tractor Supply

 

 

 

 

 

 

 

Beginning of period

 

2,335

 

 

 

2,254

 

 

 

2,296

 

 

 

2,216

 

New stores opened

 

29

 

 

 

16

 

 

 

68

 

 

 

54

 

Stores closed

 

 

 

 

 

 

 

 

 

 

 

End of period

 

2,364

 

 

 

2,270

 

 

 

2,364

 

 

 

2,270

 

Petsense by Tractor Supply

 

 

 

 

 

 

 

Beginning of period

 

207

 

 

 

205

 

 

 

206

 

 

 

198

 

New stores opened

 

 

 

 

 

 

 

4

 

 

 

7

 

Stores closed

 

(1

)

 

 

 

 

 

(4

)

 

 

 

End of period

 

206

 

 

 

205

 

 

 

206

 

 

 

205

 

Consolidated end of period

 

2,570

 

 

 

2,475

 

 

 

2,570

 

 

 

2,475

 

 

 

 

 

 

 

 

 

Pre-opening costs (000’s)

$

5,510

 

 

$

2,240

 

 

$

12,786

 

 

$

6,853

 

 

 

 

 

 

 

 

 

Balance Sheet Information:

 

 

 

 

 

 

 

Average inventory per store (000’s) (b)

$

1,201.5

 

 

$

1,161.6

 

 

$

1,201.5

 

 

$

1,161.6

 

Inventory turns (annualized)

 

3.06

 

 

 

3.03

 

 

 

3.24

 

 

 

3.28

 

Share repurchase program:

 

 

 

 

 

 

 

Cost (000’s) (c)

$

75,904

 

 

$

151,342

 

 

$

242,553

 

 

$

410,431

 

Average purchase price per share (d)

$

59.32

 

 

$

53.43

 

 

$

54.73

 

 

$

51.84

 

(a)

Comparable store average transaction value changes include the impact of transaction value changes achieved on the current period change in transaction count.

(b)

Assumes average inventory cost, excluding inventory in transit. 

(c)

Effective January 1, 2023, the Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as a part of the cost basis of the shares within treasury stock. 

(d)

All share and per share information has been adjusted to reflect the five-for-one Stock Split effective December 20, 2024.

Note: Comparable store metrics percentages may not sum to total due to rounding.

 
 
 

 

Three Months Ended

 

Nine Months Ended

 

September 27,

2025

 

September 28,

2024

 

September 27,

2025

 

September 28,

2024

Capital Expenditures (millions):

 

 

 

 

 

 

 

New stores, relocated stores and stores not yet opened

$

126.7

 

$

59.1

 

$

271.5

 

$

178.8

Existing stores

 

64.3

 

 

75.6

 

 

165.7

 

 

209.8

Information technology

 

44.9

 

 

35.7

 

 

113.7

 

 

95.8

Distribution center capacity and improvements

 

40.0

 

 

13.0

 

 

71.6

 

 

45.2

Corporate and other

 

1.7

 

 

4.8

 

 

6.7

 

 

8.4

Total

$

277.6

 

$

188.2

 

$

629.2

 

$

538.0

 
 

 

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AMZN  219.86
+1.91 (0.88%)
AAPL  259.73
+1.28 (0.49%)
AMD  232.98
+2.75 (1.19%)
BAC  51.65
+0.55 (1.08%)
GOOG  254.50
+1.97 (0.78%)
META  736.41
+3.00 (0.41%)
MSFT  521.91
+1.37 (0.26%)
NVDA  181.77
+1.49 (0.83%)
ORCL  280.87
+8.20 (3.01%)
TSLA  447.32
+8.35 (1.90%)
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