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TRACTOR SUPPLY COMPANY REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS; RECONFIRMS FISCAL YEAR 2025 OUTLOOK

Brentwood, Tenn., July 24, 2025 - Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States (the “Company”), today reported financial results for its second quarter ended June 28, 2025.

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Net Sales Increased 4.5% to $4.44 Billion
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Comparable Store Sales Increased 1.5%; Comparable Average Transaction Growth of 1.0%
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Diluted Earnings per Share (“EPS”) of $0.81

“We are pleased with our second quarter performance, reflecting the continued strength of our core categories and strong execution despite a delayed spring,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply. “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.”

“As we enter the back half of 2025, we remain confident in our outlook, are encouraged by the momentum carrying into the quarter and continue to believe in the durability of our model. 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. 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.”

Second Quarter 2025 Results
Net sales for the second quarter of 2025 increased 4.5% to $4.44 billion from $4.25 billion in the second quarter of 2024. The increase in net sales was driven primarily by new store openings and the growth in comparable store sales. Comparable store sales increased 1.5%, as compared to a decrease of 0.5% in the prior year’s second quarter, reflecting a comparable average transaction count increase of 1.0% and comparable average ticket growth of 0.5%. Comparable store sales growth was driven by continued momentum in year-round categories, especially consumable, usable and edible (C.U.E.) products, along with 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% to $1.64 billion from $1.56 billion in the prior year’s second quarter. Gross margin rate was 36.9% compared to 36.6% in the prior year’s second quarter primarily attributable to disciplined product cost management and the continued execution of an everyday low price strategy.

Selling, general and administrative (“SG&A”) expenses, including depreciation and amortization, increased 6.8% to $1.06 billion from $994.2 million in the prior year’s second quarter. As a percentage of net sales, SG&A expenses increased to 23.9% from 23.4% in the second quarter of 2024. The increase in SG&A as a percent of net sales was primarily attributable to planned growth investments and modest deleverage of fixed costs given the level of comparable store sales. These factors were partially offset by an ongoing focus on productivity and cost control, and to a lesser extent, a modest benefit from the Company’s ongoing sale-leaseback strategy.

Operating income increased 2.9% to $577.8 million from $561.5 million in the second quarter of 2024.



The effective income tax rate was 23.2% compared to 22.7% in the second quarter of 2024.

Net income increased 1.1% to $430.0 million from $425.2 million. Diluted EPS increased 2.8% to $0.81 compared to $0.79 in the second quarter of 2024.

The Company repurchased approximately 1.4 million shares of its common stock for $73.9 million and paid quarterly cash dividends totaling $122.0 million, returning a total of $195.9 million of capital to shareholders in the second quarter of 2025.

The Company opened 24 new Tractor Supply stores and two new Petsense by Tractor Supply stores and closed one Petsense by Tractor Supply store in the second quarter of 2025.

Fiscal Year 2025 Financial Outlook
Based on year-to-date performance and its outlook, Tractor Supply reiterates the following financial guidance for fiscal year 2025, initially provided on April 24, 2025:

Outlook
Net Sales+4% to +8%
Comparable Store Sales+0% to +4%
Operating Margin Rate9.5% to 9.9%
Net Income$1.07 billion to $1.17 billion
Earnings per Diluted Share$2.00 to $2.18

For the full year, the Company now expects its share repurchases will be in the range of $325 to $375 million, below the outlook most recently provided on January 30, 2025. This reflects a more measured pace of repurchases as the Company remains committed to a disciplined capital allocation approach.

Conference Call Information
Tractor Supply Company will hold a conference call today, Thursday, July 24, 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 June 28, 2025, the Company operated 2,335 Tractor Supply stores in 49 states and 207 Petsense by Tractor Supply stores in 23 states. For more information, visit www.tractorsupply.com and www.Petsense.com.

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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 recent tariff announcements 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 EndedSix Months Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
% of% of% of% of
NetNetNetNet
SalesSalesSalesSales
Net sales$4,439,729 100.00%$4,246,622 100.00%$7,906,682 100.00%$7,641,456 100.00%
Cost of merchandise sold2,799,755 63.062,690,996 63.375,011,285 63.384,864,976 63.67
Gross profit1,639,974 36.941,555,626 36.632,895,397 36.622,776,480 36.33
Selling, general and administrative expenses940,063 21.17884,903 20.841,826,269 23.101,738,338 22.75
Depreciation and amortization122,099 2.75109,265 2.57242,179 3.06213,558 2.79
Operating income577,812 13.01561,458 13.22826,949 10.46824,584 10.79
Interest expense, net17,983 0.4111,612 0.2737,624 0.4823,514 0.31
Income before income taxes559,829 12.61549,846 12.95789,325 9.98801,070 10.48
Income tax expense129,786 2.92124,650 2.94179,913 2.28177,707 2.33
Net income$430,043 9.69%$425,196 10.01%$609,412 7.71%$623,363 8.16%
Net income per share:
Basic (a)
$0.81 $0.79 $1.15 $1.16 
Diluted (a)
$0.81 $0.79 $1.14 $1.15 
Weighted average shares outstanding:
Basic (a)
530,331 538,649 531,030 539,189 
Diluted (a)
532,205 541,175 533,152 541,907 
Dividends declared per common share outstanding (a)
$0.23 $0.22 $0.46 $0.44 

(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 EndedSix Months Ended
 June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Net income$430,043 $425,196 $609,412 $623,363 
Other comprehensive loss:
Change in fair value of interest rate swaps, net of taxes— (1,382)(1,217)(2,113)
Total other comprehensive loss— (1,382)(1,217)(2,113)
Total comprehensive income$430,043 $423,814 $608,195 $621,250 



Consolidated Balance Sheets
(Unaudited)
(in thousands)

June 28,
2025		June 29,
2024
ASSETS
Current assets:
Cash and cash equivalents$225,810 $394,748 
Inventories3,090,306 3,000,033 
Prepaid expenses and other current assets227,649 244,844 
Total current assets3,543,765 3,639,625 
Property and equipment, net2,884,660 2,566,723 
Operating lease right-of-use assets3,655,729 3,225,156 
Goodwill and other intangible assets399,622 269,520 
Other assets75,019 83,500 
Total assets$10,558,795 $9,784,524 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,519,094 $1,436,520 
Accrued employee compensation72,305 69,920 
Other accrued expenses614,221 557,721 
Current portion of finance lease liabilities3,437 3,405 
Current portion of operating lease liabilities410,249 382,111 
Income taxes payable143,346 94,858 
Total current liabilities2,762,652 2,544,535 
Long-term debt1,673,472 1,730,467 
Finance lease liabilities, less current portion26,318 29,661 
Operating lease liabilities, less current portion3,443,879 2,980,876 
Deferred income taxes19,841 54,418 
Other long-term liabilities142,324 139,235 
Total liabilities8,068,486 7,479,192 
Stockholders’ equity:
Common stock (a)
7,124 7,113 
Additional paid-in capital (a)
1,399,333 1,343,508 
Treasury stock(6,191,887)(5,717,944)
Accumulated other comprehensive income— 4,680 
Retained earnings7,275,739 6,667,975 
Total stockholders’ equity2,490,309 2,305,332 
Total liabilities and stockholders’ equity$10,558,795 $9,784,524 
    

(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)
Six Months Ended
June 28,
2025		June 29,
2024
Cash flows from operating activities:
Net income$609,412 $623,363 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization242,179 213,558 
(Gain)/loss on disposition of property and equipment(33,421)(4,210)
Share-based compensation expense25,976 25,124 
Deferred income taxes(24,054)(10,712)
Change in assets and liabilities:
Inventories(231,907)(354,179)
Prepaid expenses and other current assets(26,400)(33,345)
Accounts payable271,691 256,717 
Accrued employee compensation(28,848)(21,558)
Other accrued expenses(15,892)19,996 
Income taxes160,308 97,319 
Other53,531 5,270 
Net cash provided by operating activities1,002,575 817,343 
Cash flows from investing activities:
Capital expenditures(351,644)(349,818)
Proceeds from sale of property and equipment42,906 18,487 
Acquisition of Allivet, net of cash acquired(139,936)— 
Net cash used in investing activities(448,674)(331,331)
Cash flows from financing activities:
Borrowings under debt facilities1,315,000 335,000 
Repayments under debt facilities(1,475,000)(335,000)
Principal payments under finance lease liabilities(2,056)(864)
Repurchase of shares to satisfy tax obligations(14,482)(22,717)
Repurchase of common stock(169,979)(255,756)
Net proceeds from issuance of common stock11,315 28,349 
Cash dividends paid to stockholders(244,380)(237,347)
Net cash used in financing activities(579,582)(488,335)
Net decrease in cash and cash equivalents(25,681)(2,323)
Cash and cash equivalents at beginning of period251,491 397,071 
Cash and cash equivalents at end of period$225,810 $394,748 
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized$38,901 $30,203 
Income taxes$42,818 $89,875 
Supplemental disclosures of non-cash activities:
Non-cash accruals for property and equipment$130,807 $61,418 
Increase in operating lease liabilities resulting from new or modified right-of-use assets$439,149 $272,524 
Decrease in finance lease liabilities resulting from new or modified right-of-use assets$(105)$— 


Selected Financial and Operating Information
(Unaudited)

Three Months EndedSix Months Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Sales Information:
Comparable store sales increase/(decrease)1.5 %(0.5)%0.5 %0.2 %
New store sales (% of total sales)2.9 %2.0 %2.8 %2.0 %
Average transaction value$63.68$63.46$60.51$61.24
Comparable store average transaction value increase/ (decrease) (a)
0.5 %0.1 %(1.0)%(0.1)%
Comparable store average transaction count increase/(decrease)1.0 %(0.6)%1.5 %0.3 %
Total selling square footage (000’s)39,75538,38339,75538,383
Exclusive brands (% of total sales)27.6 %26.7 %29.4 %28.1 %
Imports (% of total sales)10.9 %10.9 %11.1 %11.0 %
Store Count Information:
Tractor Supply
Beginning of period 2,3112,2332,296 2,216 
New stores opened242139 38 
Stores closed——— — 
End of period2,3352,2542,3352,254
Petsense by Tractor Supply
Beginning of period 206202206 198 
New stores opened234 7 
Stores closed(1)—(3)— 
End of period207205207 205 
Consolidated end of period2,5422,4592,542 2,459 
Pre-opening costs (000’s)$4,764$2,251$7,276$4,613
Balance Sheet Information:
Average inventory per store (000’s) (b)
$1,155.0$1,138.0$1,155.0$1,138.0
Inventory turns (annualized)3.603.643.333.41
Share repurchase program:
Cost (000’s) (c)
$72,822$140,546$166,649$259,089
Average purchase price per share (d)
$51.10$54.50$52.89$50.96

(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 EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Capital Expenditures (millions):
New stores, relocated stores and stores not yet opened$85.3 $58.0 144.8 119.7 
Existing stores58.476.4101.4 134.2 
Information technology42.835.768.8 60.1 
Distribution center capacity and improvements23.619.131.6 32.2 
Corporate and other0.23.45.0 3.6 
Total$210.3 $192.6 $351.6 $349.8