Key Points
Tractor Supply beat expectations in the second quarter on both the top and bottom lines.
The company reported a slight increase in same-store sales compared with a decline in the same period last year.
Full-year revenue guidance came in better than expected.
Here's our initial take on Tractor Supply Company's (NASDAQ: TSCO) second-quarter financial report.
Key Metrics
| Metric |
Q2 2024 |
Q2 2025 |
Change |
vs. Expectations |
| Revenue |
$4.25 billion |
$4.44 billion |
4.5% |
Beat |
| EPS |
$0.79 |
$0.81 |
2.5% |
Beat |
| Same-store sales growth |
-0.5% |
1.5% |
200 bps |
n/a |
| Gross margin |
36.6% |
36.9% |
30 bps |
n/a |
Strong Growth Despite Headwinds
Tractor Supply Company reported second-quarter results that came in ahead of expectations on both the top and bottom lines. Revenue grew by 4.5% year over year despite a difficult consumer spending environment, and comparable-store sales increased by 1.5% compared to a slight decrease in the same period last year.
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During the quarter, Tractor Supply opened 24 new stores under its flagship brand as well as two Petsense by Tractor Supply stores. The company remains in growth mode, and management made clear that new store openings have been the primary growth driver recently.
Looking ahead, Tractor Supply's full-year earnings guidance was right where analysts expected it to be, while revenue guidance was significantly stronger than expected at the midpoint of the guidance range. The company decided to trim its outlook for share repurchases for the full year, citing its desire to maintain a prudent capital-allocation strategy.
Immediate Market Reaction
The initial market reaction to Tractor Supply's earnings report was positive, which isn't a surprise given the increased full-year revenue guidance. As of 8:30 a.m. EDT on Thursday, the stock was up by 4.4% in the premarket trading session. However, keep in mind that this could certainly change in one direction or the other once the market opens, especially since management's earnings call is scheduled to begin at 10 a.m. As it stands, Tractor Supply stock is set to reach a fresh all-time high on the strength of these results.
What to Watch
Aside from the obvious things to watch (like whether the company can meet or exceed its full-year guidance), investors should keep an eye on a few other things. Tariff uncertainty is one example. Although Tractor Supply isn't the most tariff-prone business, with most of its products sourced in the United States, it does have some exposure. It also wouldn't be surprising for management to dial back its repurchasing activity even further, especially if the stock reaches new highs in the second half of the year.
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Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tractor Supply. The Motley Fool recommends the following options: short October 2025 $60 calls on Tractor Supply. The Motley Fool has a disclosure policy.
