Tractor Supply 2025 Q1 Earnings Misses Targets as Net Income Declines 9.5%

Tractor Supply (TSCO) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The retailer's earnings fell short of expectations, with a decline in both EPS and net income compared to the previous year. Despite missing targets, the company remains optimistic about future growth, revising its guidance to project net sales growth between 4% and 8% for fiscal 2025. However, analysts have expressed concerns over the company's cautious outlook amid rising tariffs and evolving economic conditions.

Revenue

The total revenue of Tractor Supply increased by 2.1% to $3.47 billion in 2025 Q1, up from $3.39 billion in 2024 Q1.

Earnings/Net Income

Tractor Supply's EPS declined 8.1% to $0.34 in 2025 Q1 from $0.37 in 2024 Q1. Meanwhile, the company's net income declined to $179.37 million in 2025 Q1, down 9.5% from $198.17 million reported in 2024 Q1. The EPS performance was below expectations, reflecting challenges in maintaining profitability.

Price Action

The stock price of Tractor Supply has edged up 0.47% during the latest trading day, has edged up 2.13% during the most recent full trading week, and has climbed 4.19% month-to-date.

Post-Earnings Price Action Review

Over the past five years, the strategy of buying Tractor Supply (TSCO) shares after a quarterly revenue drop and holding for 30 days has delivered strong returns. This approach achieved an impressive 194.97% return, outperforming the benchmark by 102.41%. Despite enduring a maximum drawdown of -29.16%, the strategy displayed resilience with a Sharpe ratio of 0.83 and a CAGR of 24.26%, indicating effective risk management and consistent growth. These metrics suggest that Tractor Supply's stock has historically rebounded well after disappointing earnings, offering promising returns for investors willing to navigate short-term volatility.

CEO Commentary

Tractor Supply's CEO emphasized the company's resilience amidst current market uncertainties, noting that despite a 0.9% decline in comparable store sales, net sales grew by 2.1% to $3.47 billion, driven by strong average transaction counts. The CEO highlighted the successful opening of 15 new Tractor Supply stores and two Petsense locations, underscoring strategic investments in expanding the company's footprint. Although operating income faced a decline due to increased SG&A expenses, the CEO expressed confidence in the company’s ability to navigate these challenges while maintaining a focus on customer needs and strategic growth initiatives.

Guidance

Tractor Supply updated its fiscal year 2025 guidance, projecting net sales growth of 4% to 8% and comparable store sales growth of 0% to 4%. The company anticipates diluted EPS in the range of $2.00 to $2.18, reflecting a cautious outlook due to external factors, including new tariffs and evolving economic conditions.

Additional News

Recently, Tractor Supply announced an increase in its dividend by 4.5% and expanded its share repurchase authorization by $1 billion, demonstrating a commitment to returning value to shareholders amidst challenging market conditions. Additionally, the company broke ground on a new distribution center in Nampa, Idaho, aiming to enhance its supply chain capabilities and support future growth. Furthermore, Tractor Supply launched Tractor Supply Rx, a new service designed to streamline ordering for pet and animal pharmacy needs, reinforcing its position as a leading rural lifestyle retailer in the United States.