Tractor Supply ($TSCO (+0.79%) ) Results for the second quarter of 2025
đ Financial results (Q2 2025)
- Turnover4.44 billion USD
- ‷ +4.5% compared to the previous year
- ‷ USD 50 million above analyst forecast (USD 4.39 billion)
- Earnings per share (EPS)USD 0.81
- ‷ +2.8 % YoY
- ‷ 1.25% above expectation (USD 0.80)
- Gross margin: 36,9 %
- ‷ Improvement of 31 basis points
- InventoriesUSD 3.1 billion
- ‷ +1.5 % per store
đȘ Business development
- Branch network:
- ‷ 24 new stores opened
- ‷ 18 locations taken over from Big Lots
- Strong stores:
- ‷ Consumer goods
- ‷ Pet food
- ‷ Successful sales campaigns such as "Chick Days"
đ Market reaction
- Share price:
- ‷ Pre-market increase of 7.35 %
- ‷ Share price reached USD 64
- ‷ Close to 52-week high - signal of strong investor confidence
đź Outlook for the full year 2025
- Net sales growth: 4-8 %
- Like-for-like sales: 0-4 %
- Operating margin: 9,5-9,9 %
- Net profit1.07-1.17 billion USD
- EPS forecast2.00-2.18 USD
- H2 expectation: Accelerated sales due to moderate inflation & price adjustments
đŁïž Management comments
- CEO Hal Lawton:
- "Rural America is doing very well right now."
- CSCO Colin Yankee:
- "Our supply chain is uniquely designed for life out here."
â ïž Risks & challenges
- Potential supply chain disruptions
- Regional market saturation
- Inflationary pressure on consumer behavior
- Impact of tariffs on margins
- Intense competition in the pet food market
ConclusionTractor Supply exceeds expectations with sales and EPS, expands strategically and confirms a robust position in rural retail - despite macroeconomic uncertainties. The positive market reaction reflects confidence in future growth.
