- Tractor Supply Company (TSCO, Financial) reports a 2.1% increase in net sales for Q1 2025, reaching $3.47 billion.
- Comparable store sales declined by 0.9%, despite a 2.1% increase in average transaction growth.
- Tractor Supply updates fiscal 2025 outlook with net sales projected to grow by 4% to 8%.
Tractor Supply Company (TSCO), the largest rural lifestyle retailer in the U.S., announced its financial results for the first quarter of 2025, reporting a 2.1% increase in net sales, which amounted to $3.47 billion, compared to $3.39 billion in the same period last year. Despite the overall sales growth, comparable store sales declined by 0.9%, a shift from the 1.1% increase experienced in the previous year's first quarter. The company achieved strong growth in average transaction counts, which rose by 2.1%, while average ticket value saw a decline of 2.9%.
Gross profit for the quarter rose by 2.8% to $1.26 billion, improving the gross margin by 25 basis points to 36.2%. This was primarily due to effective product cost management and the implementation of an everyday low price strategy. However, SG&A expenses increased by 5.1%, totaling $1.01 billion, attributed to planned growth investments and the operations of the company's tenth distribution center.
Operating income witnessed a decline of 5.3%, amounting to $249.1 million, and net income dropped by 9.5% to $179.4 million. Earnings per diluted share decreased from $0.37 in Q1 2024 to $0.34 in the first quarter of 2025.
For fiscal 2025, Tractor Supply has adjusted its financial guidance, projecting net sales growth between 4% to 8%, and comparable store sales between 0% to 4%. The company is also providing second-quarter guidance, expecting net sales growth of 3% to 4%, with comparable store sales remaining flat to increasing by 1% and earnings per diluted share estimated between $0.79 and $0.81.
Tractor Supply continues to adapt to evolving market conditions, including the recent introduction of new tariffs, in collaboration with vendor and supply chain partners. The company remains committed to delivering value to shareholders and maintaining its leading position in the retail sector.
