Tractor Supply Co (TSCO) investor relations material

Executive summary

• Net sales for Q3 2025 rose 7.2% year-over-year to $3.72 billion, driven by comparable store sales growth, new store openings, and the Allivet acquisition.

• Net income increased 7.4% to $259.3 million, with diluted EPS up 8.6% to $0.49, retroactively adjusted for a 5:1 stock split.

• Customer engagement and loyalty metrics reached record highs, with over 80% of sales from club members.

• Digital sales grew at a low double-digit rate, with nearly 80% of online orders fulfilled by stores.

• 29 new stores opened in the quarter, bringing the year-to-date total to 68.

Financial highlights

• Gross margin improved by 15 basis points to 37.4%, with gross profit up 7.7% to $1.39 billion.

• SG&A expenses rose 8.4% to $1.05 billion, representing 28.1% of net sales, up from 27.8% last year.

• Operating income for Q3 2025 was $342.7 million, up 5.6% year-over-year.

• Diluted EPS was $0.49, up from $0.45 in the prior year.

• Returned over $600 million to shareholders year-to-date through dividends and share repurchases.

Outlook and guidance

• Fiscal 2025 guidance narrowed: net sales growth of 4.6%-5.6%, comparable store sales growth of 1.4%-2.4%, operating margin of 9.5%-9.7%, and diluted EPS of $2.06-$2.13.

• Q4 comparable store sales expected to increase 1%-5%, with winter weather as a key variable.

• Capital expenditures for fiscal 2025 projected at $650–$725 million, including 90 new stores and a new distribution center.

• For 2026, plan to open 100 new stores, with expectations for normalized investment levels and margin improvement.

• Management expects existing liquidity and cash flow to be sufficient for operational and capital needs.