Tractor Supply Company (NASDAQ:TSCO) shares are trading higher Thursday after the rural lifestyle retailer reported second-quarter earnings per share of 81 cents, aligning with analyst estimates.
The company also beat revenue expectations, driven by new store openings and an increase in comparable store sales, and reaffirmed its full-year 2025 financial outlook.
The company reported quarterly sales of $4.44 billion (+4.5% year over year) outpacing the Street view of $4.398 billion. Comparable store sales increased 1.5% year over year, while the firm saw comparable average transaction growth of 1%.
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Comparable store sales growth was driven by continued momentum in year-round categories, especially consumable, usable, and edible products, and solid demand for spring seasonal items.
Performance was also positive in apparel, gift and décor, as well as big ticket items. These gains were partially offset by softness in select discretionary categories.
Gross profit increased 5.4% year over year to $1.64 billion. The gross margin rate was 36.9%, compared to 36.6% in the prior year’s second quarter, primarily due to disciplined product cost management and the continued execution of an everyday low-price strategy.
Operating income increased 2.9% to $577.8 million from $561.5 million in the second quarter of 2024.
In the second quarter of 2025, the company opened 24 new Tractor Supply stores and two new Petsense by Tractor Supply locations. During the same period, it closed one Petsense by Tractor Supply store.
“Despite external pressures, including economic uncertainty and shifting tariffs, our year-to-date performance and visibility into the remainder of the year provide a solid foundation to reaffirm our 2025 financial outlook,” said Hal Lawton, president and chief executive officer.
“With a largely U.S.-sourced assortment, strong vendor partnerships and a flexible, scalable supply chain, we are well-positioned to navigate near-term dynamics and deliver long-term value for our shareholders.”
Tractor Supply exited the quarter with cash and equivalents worth $225.81 million, with inventories worth $3.09 billion.
The company’s long-term debt contracted to $1.67 billion, compared with $1.73 billion in the year-ago period.
Tractor Supply reaffirmed its FY2025 GAAP EPS guidance at $2.00-$2.18 per share, encompassing the $2.10 consensus estimate. It also affirmed its FY2025 sales guidance of $15.478 billion to $16.074 billion versus the $15.587 billion estimate.
