Financial position & performance
Tractor Supply ($TSCO (+2,54%) ) missed analysts' expectations in the first quarter of 2025:
Revenue: USD 3.47 billion (-2.3% below forecast; +2.1% YoY)
EPS: USD 0.34 (vs. expected USD 0.37; -8.1 %)
Gross margin: 36.2% (+25 basis points YoY)
Operating income: USD 249.1m (-5.3% YoY)
Net profit: USD 179.4m (-9.5% YoY)
Causes & challenges
- Delayed start to spring and adverse weather impacted sales
- 0.9% decline in comparable store sales
- Ongoing supply chain problems and economic uncertainty
Market reaction
Share price fell by 4.04% to USD 48.68 after the announcement
Share price approaching 52-week low of USD 46.85
Strategic focus
Expansion of product range and sales
Diversification of the supplier base
Strengthening the resilience of the supply chain
Outlook2025
Sales growth: 4-8 %
Comparable store sales: 0-4 %
Operating margin: 9.5-9.9%
EPS forecast: USD 2.00-2.18
Net profit: USD 1.07-1.17 billion
Management commentary
CEO Hal Lawton emphasized resilience and strong customer loyalty as key strengths of the company in the focuscurrent market environment.
Significant risks
- Weather-related sales fluctuations
- Supply chain risks
- Economic volatility & potential customs duties
- Strong competition in the retail sector