Tractor Supply’s second quarter results reflected steady customer engagement and operational resilience, with performance in line with Wall Street’s expectations and a largely muted market reaction. Management highlighted strong transaction growth, record-high participation in its Neighbor’s Club loyalty program, and continued expansion in needs-based categories such as consumable, usable, and edible products. CEO Hal Lawton noted that, despite a delayed spring and ongoing macroeconomic uncertainty, “customer loyalty is a hallmark of Tractor Supply” and contributed to solid sales momentum, particularly as the quarter progressed. Seasonal events like Chick Days and increased digital sales fulfillment from stores also supported top-line results.
Is now the time to buy TSCO? Find out in our full research report (it’s free).
Tractor Supply (TSCO) Q2 CY2025 Highlights:
- Revenue: $4.44 billion vs analyst estimates of $4.40 billion (4.5% year-on-year growth, 0.9% beat)
- EPS (GAAP): $0.81 vs analyst estimates of $0.80 (in line)
- Adjusted EBITDA: $699.9 million vs analyst estimates of $691.4 million (15.8% margin, 1.2% beat)
- EPS (GAAP) guidance for the full year is $2.09 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 13%, in line with the same quarter last year
- Locations: 2,542 at quarter end, up from 2,459 in the same quarter last year
- Same-Store Sales rose 1.5% year on year (-0.5% in the same quarter last year)
- Market Capitalization: $30.66 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Tractor Supply’s Q2 Earnings Call
- Simeon Gutman (Morgan Stanley) asked how traffic and ticket trends are expected to shift in the second half. CFO Kurt Barton replied that trends in transaction growth and average ticket are expected to remain balanced, with continued strength in consumable categories.
- Robert Ohmes (Bank of America) inquired about drivers of back-half performance and possible demand pull-forward. CEO Hal Lawton clarified that momentum in June has continued into July, with no evidence of sales being pulled forward from future periods.
- Seth Sigman (Barclays) questioned the cadence of planned price changes and tariff-driven inflation. CEO Hal Lawton explained that the company has strong visibility on pricing for the third quarter, with flexibility to respond to tariff developments as they unfold.
- Steven Zaccone (Citigroup) asked about gross margin and SG&A leverage as comps accelerate. CFO Kurt Barton noted that gross margin expansion will be more modest in the second half, while SG&A deleverage is expected to be less pronounced, supporting overall margin stability.
- Charles Grom (Gordon Haskett Research Advisors) sought updates on the early results of PetRx and Neighbor’s Club integration. Chief Stores Officer Rob Mills reported strong customer adoption and ongoing efforts to drive awareness and in-store engagement for the pet pharmacy platform.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of Final Mile delivery network expansion and its impact on customer satisfaction and average order sizes, (2) how effectively the company manages inflation and tariff-related cost pressures without eroding gross margins, and (3) continued growth in Neighbor’s Club membership and engagement, particularly in the pet and needs-based categories. Progress in digital fulfillment and the integration of new product assortments will also be critical signposts for execution.
Tractor Supply currently trades at $57.61, down from $59.61 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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