Tractor Supply (TSCO) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 rose 2.1% year-over-year to $3.47 billion, driven by new store openings and the Allivet acquisition, while comparable store sales declined 0.9% and net income fell 9.5% to $179.4 million; diluted EPS was $0.34.

• Gross margin improved by 25 basis points to 36.2% due to disciplined cost management, but operating income fell 5.3% to $249.1 million as SG&A expenses rose to 29% of sales.

• Customer health indicators remain robust, with record retention, positive new customer counts, and market share gains in core categories.

• Over 40 million customers enrolled in Neighbor's Club and more than 600 garden centers operational.

Financial highlights

• Comparable store sales declined 0.9%, with transaction count up 2.1% but average ticket down 2.9%.

• Cash flow from operations was $216.8 million, down from $257.4 million in Q1 2024; capital expenditures totaled $141.3 million, mainly for new stores and the Allivet acquisition.

• Effective tax rate increased to 21.8% from 21.1% year-over-year.

• Inventory per store up 1.5% year-over-year; average inventory per store reached $1.20 million.

Outlook and guidance

• Fiscal 2025 net sales growth guidance updated to 4%-8% (previously 5%-7%), with comparable store sales expected between 0% and 4%, operating margin 9.5%-9.9%, net income $1.07-$1.17 billion, and EPS $2.00-$2.18.

• Q2 2025 guidance: net sales growth of 3%-4%, comparable store sales flat to +1%, and EPS of $0.79-$0.81.

• Guidance reflects continued spring softness, persistent big ticket pressure, and increased uncertainty from new tariffs and macroeconomic pressures; only near-term tariff impacts included.

• Projected 2025 capital expenditures (net of sale-leaseback proceeds) are $650–$725 million, including plans for 90 new Tractor Supply stores and 10 new Petsense stores.