Tractor Supply Company Reports 2.1% Sales Growth and $179.4M Net Income in Q1 Fiscal 2025

Tractor Supply Company reported its financial results for the first quarter of fiscal 2025, revealing a net sales increase of 2.1% to $3.47 billion, compared to $3.39 billion in the same period last year. The growth was attributed to new store openings and contributions from the recently acquired Allivet, an online pet pharmacy, which added $97.9 million in sales. However, comparable store sales experienced a decline of 0.9%, reflecting a decrease in average transaction value despite a 2.1% increase in transaction count. The company's net income for the quarter was $179.4 million, or $0.34 per diluted share, down from $198.2 million, or $0.37 per diluted share, in the prior year.

The company's gross profit rose by 2.8% to $1.26 billion, with a gross margin of 36.2%, an increase of 25 basis points from the previous year. This improvement was primarily due to effective product cost management and the implementation of an everyday low price strategy. Selling, general, and administrative expenses, including depreciation and amortization, increased by 5.1% to $1.01 billion, driven by planned growth investments and the operation of a new distribution center. Consequently, operating income decreased by 5.3% to $249.1 million.

In terms of operational developments, Tractor Supply expanded its footprint, operating a total of 2,517 retail stores across 49 states as of March 29, 2025, which includes 2,311 Tractor Supply stores and 206 Petsense locations. The company opened 15 new Tractor Supply stores and two Petsense stores during the quarter. The acquisition of Allivet, completed on December 30, 2024, for $135 million, is expected to enhance the company's offerings in the pet care market and drive future growth.

The company’s liquidity position remains strong, with cash and cash equivalents totaling $231.7 million at the end of the quarter. Tractor Supply's total debt increased to $2.08 billion, up from $1.83 billion at the end of the previous fiscal year, primarily due to borrowings under its revolving credit facility. The company declared cash dividends totaling $122.4 million during the quarter and repurchased approximately 1.7 million shares at a cost of $94 million as part of its ongoing share repurchase program.

Looking ahead, Tractor Supply anticipates continued growth driven by new store openings and the integration of Allivet into its operations. The company plans to open approximately 90 new Tractor Supply stores and 10 new Petsense locations in fiscal 2025, alongside ongoing investments in technology and distribution capabilities. Despite the challenges posed by market conditions and comparable store sales declines, Tractor Supply remains committed to its strategic initiatives aimed at enhancing customer engagement and expanding its market presence.