What were the key takeaways from Tractor Supply’s earnings call?

What is the revenue and EPS growth rate for Tractor Supply year over year?

What is Tractor Supply's latest dividend and current dividend yield?

Did Tractor Supply beat or miss consensus estimates last quarter?

What is Tractor Supply's gross profit margin?

What factors drove the changes in Tractor Supply's revenue and profit?

What guidance did Tractor Supply's management provide for the next earnings period?

What were the key takeaways from Tractor Supply's earnings call?

- **2025 Results**: Q4 net sales $3.9B (+3.3% YoY), full year $15.5B (+4.3% YoY) with 99 new stores opened.
- **2026 Outlook**: Sales growth 4-6%, comps 1-3%, driven by new stores and strategic initiatives.
- **Gross Margin**: Expected expansion in 2026, with 10-20 basis points improvement per 1% comp above 2% threshold.
- **Direct Sales Growth**: Targeting $50M in 2026, with specialists generating $2M+ in Q4 2025.
- **Pet Category Resilience**: Maintaining share with fresh pet food expansion and localized assortments.

**【CEO Summary Section】**
- Q4 2025 net sales: $3.9 billion (+3.3% YoY), with comparable store sales (comps) +0.3% driven by modest average ticket growth.
- Full year 2025 net sales: $15.5 billion (+4.3% YoY), with comps +1.2% and 99 new store openings.
- Key challenges: 100 basis points headwind from lapping 2024 storm recovery, softness in big-ticket and holiday categories, and elevated promotions.
- Strategic initiatives: Direct sales (50 specialists in 2025, targeting $50M in 2026), final-mile delivery (expanding to 375 hubs), and pet Rx integration (Allivet sales ~$100M in 2025).
- 2026 outlook: Total sales growth 4-6%, comps 1-3%, driven by new stores, digital growth, and improved category execution.

**【CFO Financial Commentary】**
- Q4 2025 diluted EPS: $0.43, reflecting modest sales growth and elevated promotional activity.
- Full year 2025 EPS: $2.06, with gross margin +16 basis points YoY to 30.8%.
- 2026 guidance: EPS $2.13-2.23, operating margin 9.3-9.6%, and net capital spending $675-725M.
- Key financial trends: SG&A deleverage (+70 basis points YoY), inventory per store +5% (tariffs and strategic builds), and effective tax rate 22%.

**【Q&A Highlights】**
- **Gross margin expansion**: 2026 expected to continue, with 10-20 basis points of improvement above 2% comp threshold.
- **2026 comp cadence**: Balanced across quarters, with Q1 tracking above plan despite tough lapping of Winter Storm Fern.
- **Direct sales profitability**: 2025 specialists generated $2M+ in December, with 2026 target of $50M sales.
- **Pet category performance**: Maintaining share, with fresh pet food expansion and 4health brand refreshes.
- **Tariff impact**: 20-30 basis points of pressure, offset by cost management and selective price adjustments.

Tractor Supply Company (TSCO) Q4 2025 Earnings Call Transcript

- **Revenue Resilience**: 7.2% net sales growth, 3.9% comp sales driven by transactions and ticket growth.
- **Strategic Momentum**: Direct sales $200k/week, 312 stores covered; Final Mile and AI investments paying dividends.
- **Guidance Clarity**: 2025 EPS $2.06-2.13, 2026 to see normalized margin expansion with 100 new stores.
- **Customer Loyalty**: 80% sales via Neighbor's Club, record satisfaction scores, and 17Qs of engagement improvement.
- **Growth Catalysts**: Wildlife, Field & Stream, and ammo categories expanding; 2026 to focus on self-funding direct sales and rural expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net sales increased 7.2% to $3.72 billion, with comparable store sales up 3.9%. Transaction growth of 2.7% and average ticket growth of 1.2% drove results.
- **Customer Engagement**: Record customer satisfaction scores, 80% of sales via Neighbor's Club members, and reactivated customers highlight loyalty.
- **Category Performance**: Strong seasonal (lawn & garden, power equipment) and C.U.E. (livestock, wildlife) sales offset softness in discretionary categories.
- **Strategic Initiatives**: Direct sales reps now cover 312 stores, generating $200k+ weekly sales. Final Mile and AI-driven efficiency improvements are key priorities.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $142M, Non-GAAP EPS $0.49. Gross margin 37.4%, up 15bps vs. prior year. SG&A deleveraged 29bps due to strategic investments.
- **Guidance Update**: Narrowed 2025 guidance to 4.6-5.6% net sales growth, 1.4-2.4% comp sales, and $2.06-2.13 EPS. 2026 outlook includes 100 new stores and normalized margin expansion.
- **Tariff Impact**: AUR growth offset by 50-60bps from tariffs, with plans to self-fund direct sales by 2026.

**【Q&A Key Highlights】**
- **Direct Sales**: 48 reps active, targeting 100+ by end-2025. Sales per rep 7x store average, with no incremental 2026 costs.
- **Consumer Behavior**: Resilient core C.U.E. business, cautious on big-ticket despite 50%+ tractors/riders share gain.
- **Pricing Strategy**: Surgical price adjustments to maintain value perception; AUR growth expected to continue.
- **Store Growth**: 68 new stores YTD, 100+ in 2026. Cannibalization lower than modeled, West expansion a focus.
- **AI & Retail Media**: 1,500+ employees using OpenAI, agents automating tasks; Retail Media revenue up 3x YoY.

Tractor Supply Company (TSCO) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 net sales $4.44B (+4.5% YoY), driven by C.U.E. categories and sequential comp improvement.
- **Customer Loyalty**: 41M Neighbor's Club members (80% of sales), record Chick Days, and 75K Final Mile deliveries in Q2.
- **Gross Margin Expansion**: +31 bps to 36.9%, offsetting SG&A growth (+51 bps) for operating income +2.9%.
- **Final Mile Success**: 15% of stores with delivery capabilities, $400 AOV, and 10x lower return rate vs. third-party.
- **FY25 Guidance**: EPS $2.00-$2.18, net sales +4% to +8%, with cautious optimism for back-half comp acceleration.

**【CEO Summary Section】**
- **Record Q2 Performance**: Net sales of $4.44 billion (+4.5% YoY), comparable store sales +1.5%, and diluted EPS of $0.81. 
- **Customer Engagement**: 41 million Neighbor's Club members (80% of sales), record Chick Days sales, and 75,000 Final Mile deliveries in Q2.
- **Category Strengths**: C.U.E. (Consumable, Usable, Edible) led growth, with standout performance in live poultry, pet food resets, and Garden Centers.
- **Momentum**: Sequential comp improvement across Q2, with June as the strongest month and July showing continued strength.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: +31 bps to 36.9%, driven by product cost management and Everyday Low Price strategy.
- **SG&A Growth**: +51 bps to 23.9% due to strategic investments (e.g., new DC, depreciation), but disciplined expense control maintained.
- **Net Income**: $430 million (+1.1% YoY), with FY25 guidance reaffirmed: EPS $2.00-$2.18, net sales +4% to +8%.
- **Share Repurchases**: Reduced to $325M-$375M (from $525M-$600M) to prioritize inventory and tariff mitigation.

**【Final Mile Initiative Update】**
- **Rollout Progress**: 145 hub stores and 220 spokes (15% of chain) with Final Mile capabilities, targeting 25% coverage by year-end.
- **Performance Metrics**: Average order value $400, 10x lower return rate, and 10%+ customer satisfaction score improvement vs. third-party delivery.
- **Strategic Impact**: Direct sales growth opportunity, reduced reliance on third-party logistics, and enhanced customer loyalty in rural markets.

**【Q&A Highlights】**
- **Second Half Outlook**: Expect stronger comps (transaction + ticket growth), favorable lapping of 2024's weak Q3/Q4, and rural consumer resilience.
- **Tariff Mitigation**: Proactive vendor negotiations and inventory management to limit AUR impact, with potential modest gross margin pressure.
- **Pet Category Recovery**: Pet food market entering recovery cycle, with new brand introductions and Rx/Otc integration via Allivet.
- **Competitive Position**: Final Mile initiative differentiates Tractor Supply in rural delivery, with 75,000 Q2 deliveries and 94% in-stock rate for C.U.E. categories.


Tractor Supply Company (TSCO) Q2 2025 Earnings Conference Call Transcript

- **Resilient Q1 Growth**: $3.47B revenue (+2.1% YoY) despite spring delays, driven by +2.1% transaction growth.
- **Customer Engagement**: Record retention, +15% new customers, and unit growth in core categories.
- **Tariff Mitigation**: 60%+ domestic sourcing, 50% China import reduction, and agile vendor negotiations to offset 145% tariffs.
- **Chick Days Record**: 75% sell-through, showcasing backyard poultry trend and recurring feed demand.
- **FY25 Guidance**: 4-8% sales growth, EPS $2.00-$2.18, reflecting cautious but optimistic outlook.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $3.47 billion (+2.1% YoY), driven by strong transaction growth (+2.1%) despite delayed spring selling season.
- Key customer metrics: +15% new customer count, record retention of existing customers, and unit growth in consumable, usable, and edible categories.
- Updated FY25 guidance reflects spring delays, big ticket pressure, and tariff scenarios: net sales 4-8% growth, EPS $2.00-$2.18.
- Emphasis on resilience: 60%+ of products domestically sourced, <12% direct imports, and 50%+ China import reduction by year-end.

**【CFO Financial Highlights】**
- Q1 EPS: $0.34 (below expectations), impacted by $20M Easter shift and 250bps spring delay headwind.
- Gross margin: 36.2% (+25bps YoY) due to product cost management and Everyday Low Price strategy.
- SG&A rate: 29.0% (+81bps YoY) from planned investments and fixed cost deleverage.
- Balance sheet strength: $3.2B inventory, $1.7M shares repurchased, and $122.4M dividends paid.

**【Q&A Key Takeaways】**
- **Tariff Strategy**: Proactive vendor negotiations, diversified sourcing, and surgical price adjustments to offset 145% China tariffs. No immediate price hikes, but potential pass-through in H2.
- **Big Ticket Outlook**: Q2 pressure expected, but 15% of business in big ticket limits impact. Spring categories down 30% in South, but northern markets resilient.
- **Chick Days Success**: Record-breaking event with +75% sell-through, driving repeat purchases (1 chicken eats 75lbs of feed/year).
- **Deflation to Inflation**: AUR expected to turn positive mid-2025, supported by corn price recovery and pet category trough.
- **Strategic Investments**: PetRx launch, direct sales teams, and localized stores progressing on track. FY25 capex flexibility to adapt to macro conditions.


Tractor Supply (TSCO)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $14.9B net sales, $1.4B operating cash flow, and 38M+ Neighbor's Club members.
- **2025 Growth Drivers**: 5-7% sales growth, 1-3% comp sales, and 20-40 bps gross margin expansion.
- **Strategic Acquisitions**: Allivet adds $100M+ net sales, Field & Stream partnership expands outdoor offerings.
- **Resilience to Macro**: Deflation headwinds easing, cold weather supports Q1 2025 start.
- **Customer Engagement**: 80% sales via loyalty program, 50% Petsense customers cross-shop Tractor Supply.

**【CEO Summary Section】**
- **2024 Fiscal Year Highlights**: Net sales reached $14.9 billion (+2.2% YoY), comparable store sales grew 0.2%, and diluted EPS rose to $2.04. Digital sales exceeded $1.1 billion, and operating cash flow hit a record $1.4 billion.
- **Strategic Acquisitions & Expansion**: Opened 80 Tractor Supply and 11 Petsense stores, completed the Allivet acquisition ($135M purchase price, >$100M net sales contribution), and announced a multi-year partnership with Field & Stream.
- **Customer Engagement**: Neighbor's Club membership surpassed 38 million, representing 80% of total sales. Petsense customers cross-shop Tractor Supply at a 50% rate.
- **2025 Outlook**: Forecast 5-7% net sales growth, 1-3% comp sales growth, and gross margin expansion driven by supply chain efficiencies and exclusive brands.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Net sales +3.1%, comp store sales +0.6% (driven by +2.3% transaction growth). Diluted EPS $0.44. Gross margin 35.2% (-9 bps YoY), SG&A 26.8% (+60 bps YoY) due to D&A and fixed cost deleverage.
- **2025 Financial Guidance**: 
  - Net sales: $15.6-15.9B (+5-7%)
  - Gross margin: +20-40 bps
  - Operating margin: 9.6-10.0%
  - EPS: $2.10-2.22
  - CapEx: $650-725M (4-4.5% of sales)
- **Key Investments**: 90 new Tractor Supply stores, 10 Petsense stores, and a new DC in Idaho for Pacific Northwest expansion.
- **Tariff Strategy**: 12% of sales are direct imports; diversified sourcing and scenario planning to mitigate risks.

**【Q&A Key Takeaways】**
- **Transaction Growth**: Q4 comp transactions +2.3%, driven by broad geographic and category participation. New stores add ~1% to total sales growth.
- **Gross Margin Dynamics**: 2025 gross margin expansion (+20-40 bps) offset by SG&A deleverage (D&A +10%, strategic investments 15-20 bps margin).
- **Allivet Integration**: 2025 net sales +$100M+, accretive to EPS. Long-term target: Allivet operating margin to match Tractor Supply levels.
- **Pet & Poultry Growth**: Chick Days 2025 saw record pre-orders, with backyard poultry customers representing 1/5 of shoppers. PetRx via Allivet adds $15B to TAM.
- **Macro Resilience**: 2025 headwinds (deflation, PCE shift) expected to moderate. Cold weather in Q1 2025 supports strong start vs. 2024 Q1.

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