Tractor Supply Co. reported fourth-quarter results fell short of guidance due to continued weakness in spending on discretionary categories, including big-ticket items. Same-store sales inched up 0.3 percent in the quarter and 1.2 percent in the full year.

Highlights

  • Fourth quarter net sales increased 3 percent to $3.90 billion with comparable store sales increase of 0.3 percent. The company had forecast same-store sales to increase in the range of 1 percent to 5 percent.
  • Fiscal year 2025 net sales increased 4.3 percent to $15.52 billion with comparable store sales increase of 1.2 percent. Guidance had called for net sales in the range 4.6 percent and 5.6 percent and a same-store gain between 1.4 percent and 2.4 percent.
  • Fourth quarter diluted earnings per share of 43 cents and fiscal year 2025 diluted eps of $2.06. Earnings for the year were expected in the range of $2.06 to $2.13.
  • Company provides fiscal year 2026 guidance with net sales growth of 4 percent to 6 percent and diluted eps of $2.13 to $2.23

“Our fourth quarter results came in below our expectations and reflected a shift in consumer spending, with essential categories remaining resilient while discretionary demand moderated. Against that backdrop, our team stayed focused on executing the fundamentals of the business, growing share in the farm and ranch channel and continuing to engage our customers. I want to thank our more than 52,000 Team Members for their continued dedication to the work they do every day across our stores, distribution centers and store support center,” said Hal Lawton, president and chief executive officer of Tractor Supply.

“Overall, 2025 was a year of meaningful progress. We continued to gain market share, opened productive new stores and advanced Project Fusion and localization. At the same time, we built the capabilities needed to support Direct Sales, Final Mile and pet and animal prescriptions. As we move into 2026, we are prepared to operate with discipline across a range of economic conditions. With much of our strategic foundation now in place, we remain focused on executing our Life Out Here 2030 strategic initiatives and delivering a more consistent performance profile over time,” said Lawton.

Fourth Quarter 2025 Results
Net sales increased 3.3 percent to $3.90 billion from $3.77 billion in the fourth quarter of 2024. The increase in net sales was driven by new store openings, the growth in comparable store sales and the contribution from Allivet. Comparable store sales increased 0.3 percent, as compared to an increase of 0.6 percent in the prior year’s fourth quarter, reflecting comparable average ticket growth of 0.3 percent. The continued strength in consumable, usable and edible products was partially offset by the lack of emergency-response-related demand and ongoing pressure in discretionary categories including big ticket products.

Gross profit increased 3.0 percent to $1.37 billion from $1.33 billion in the prior year’s fourth quarter. Gross margin rate was 35.1 percent compared to 35.2 percent in the prior year’s fourth quarter, as ongoing cost management initiatives were offset by higher tariffs, incremental promotional activity and increased delivery-related transportation costs.

Selling, general and administrative (SG&A) expenses, including depreciation and amortization, increased 6.0 percent to $1.07 billion from $1.01 billion in the prior year’s fourth quarter. As a percent of net sales, SG&A expenses increased to 27.5 percent from 26.8 percent in the fourth quarter of 2024. The increase in SG&A as a percent of net sales was primarily attributable to planned investments and fixed cost deleverage given the level of comparable store sales growth. These factors were partially offset by a disciplined focus on productivity and ongoing cost control.

Operating income decreased 6.5 percent to $297.7 million from $318.3 million in the fourth quarter of 2024.

The effective income tax rate was 19.0 percent compared to 21.5 percent in the fourth quarter of 2024, primarily reflecting the timing of certain tax planning initiatives.

Net income decreased 3.8 percent to $227.4 million from $236.4 million. Diluted EPS decreased 2.7 percent to 43 cents compared to 44 cents in the fourth quarter of 2024.

The company repurchased approximately 2.2 million shares of its common stock for $117.5 million and paid quarterly cash dividends totaling $121.4 million, returning a total of $238.9 million of capital to shareholders in the fourth quarter of 2025.

The company opened 31 new Tractor Supply stores and one new Petsense by Tractor Supply store in the fourth quarter of 2025.

Fiscal Year 2025 Results
Net sales increased 4.3 percent to $15.52 billion from $14.88 billion in fiscal 2024. The increase in net sales was driven primarily by new store openings and growth in comparable store sales. Comparable store sales increased 1.2 percent, compared to fiscal 2024.

Gross profit increased 4.8 percent to $5.65 billion from $5.40 billion in fiscal 2024. Gross margin rate was 36.4 percent compared to 36.3 percent in fiscal 2024.

SG&A expenses increased 6.6 percent to $4.19 billion from $3.93 billion in fiscal 2024. As a percent of net sales, SG&A expenses increased to 27.0 percent from 26.4 percent in fiscal 2024.

Operating income was $1.47 billion, in line with prior year.

The effective income tax rate was 21.6 percent compared to 22.1 percent in fiscal 2024.

Net income was essentially flat with the prior year at $1.10 billion. Diluted EPS increased 0.9 percent to $2.06 compared to $2.04 in fiscal 2024.

The company repurchased approximately 6.6 million shares of its common stock for $360.8 million and paid quarterly cash dividends totaling $487.7 million, returning a total of $848.5 million of capital to shareholders in fiscal 2025.

During fiscal 2025, the company opened 99 new Tractor Supply stores and five new Petsense by Tractor Supply stores and closed four Petsense by Tractor Supply stores.

Fiscal Year 2026 Financial Outlook
The company is providing its financial guidance for fiscal 2026. This outlook is based on what the company can reasonably predict at this time.

For fiscal 2026, the company expects the following:

The company’s capital plans for 2026 include opening approximately 100 Tractor Supply stores, continuing Project Fusion remodels and garden center transformations, completion of its 11th distribution center and continued investment in store and digital technology. As of December 27, the company operated 2,395 Tractor Supply stores in 49 states and 207 Petsense by Tractor Supply stores in 23 states.

Image courtesy Tractor Supply