Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retailer in the United States, announced its financial results for the third quarter ended September 27, 2025. The company achieved robust sales growth, improved profitability, and strengthened its market position as it continues executing its long-term Life Out Here 2030 strategy.
For the quarter, net sales rose 7.2% to a record $3.72 billion, compared with $3.47 billion in the same period last year. Comparable store sales increased 3.9%, with a 2.7% rise in transaction count and a 1.2% increase in average ticket size. The growth was fueled by steady demand for spring and summer seasonal products and continued strength in Tractor Supply’s core consumable, usable, and edible (C.U.E.) categories.
CEO Commentary: Execution and Strategic Progress
Hal Lawton, President and Chief Executive Officer of Tractor Supply, praised the company’s third-quarter performance and credited the results to disciplined execution and the commitment of its team members.
“The Tractor Supply team delivered a strong third quarter,” Lawton said. “Our performance was driven by ongoing share gains, agile execution through an extended summer season, and healthy transaction growth. These results reflect the unwavering dedication of our 52,000 Team Members who live ‘Life Out Here’ every day.”
Lawton emphasized that the company remains well positioned as it enters the final quarter of the year, benefiting from operational discipline, strategic investment, and visibility around external factors such as tariffs and consumer demand.
“With improved visibility on tariffs and the broader demand environment, we are narrowing our full-year guidance range to reflect our year-to-date performance and a balanced outlook,” Lawton continued. “We are encouraged by the early momentum in our Life Out Here 2030 strategic initiatives — enhancing customer experience, expanding our capabilities, and strengthening our foundation for long-term growth.”
Financial Performance Overview
Net Sales and Comparable Store Growth:
Tractor Supply’s total net sales climbed 7.2% year-over-year to $3.72 billion. The increase was driven by healthy comparable store sales growth of 3.9%, boosted by strong customer traffic, resilient demand in key categories, and contributions from new store openings and the Allivet business.
The company reported that comparable store sales improved notably versus the prior year’s third quarter, which had seen a modest 0.2% decline. Growth in seasonal categories such as outdoor power equipment, pet care, and lawn and garden products helped offset cost pressures in other areas.
Gross Profit and Margins:
Gross profit rose 7.7% to $1.39 billion, compared to $1.29 billion in the prior year. The gross margin rate increased by 15 basis points to 37.4%, supported by the company’s ongoing product cost management efforts and disciplined everyday low price (EDLP) strategy.
Tractor Supply noted that while tariff and transportation costs created some headwinds, operational efficiencies and sourcing improvements helped offset those pressures. The company’s commitment to balancing price competitiveness with cost discipline continues to be a key component of its margin resilience.
Operating Expenses:
Selling, general, and administrative (SG&A) expenses, including depreciation and amortization, totaled $1.05 billion, an 8.4% increase from $965.8 million a year earlier. As a percentage of sales, SG&A expenses rose slightly to 28.1% from 27.8%.
The increase primarily reflected planned strategic investments, higher incentive compensation due to stronger performance, and a lower benefit from sale-leaseback transactions compared to last year. These costs were partially offset by productivity gains and operating efficiencies.
Operating Income and Net Earnings:
Operating income improved 5.6% to $342.7 million, up from $324.6 million in the third quarter of 2024. Net income grew 7.4% year-over-year to $259.3 million, compared with $241.5 million last year.
The company’s diluted earnings per share (EPS) rose 8.6% to $0.49, up from $0.45 in the third quarter of 2024. This marks another quarter of double-digit percentage EPS growth, demonstrating the company’s ability to manage costs effectively while driving top-line expansion.
Tax Rate and Capital Allocation:
Tractor Supply’s effective income tax rate for the quarter was 21.0%, lower than the 22.3% rate recorded in the same period last year. The decline reflects the timing of certain tax planning initiatives that the company expects to balance out over the course of the year.
In the third quarter, Tractor Supply continued to deliver on its capital return commitments. The company repurchased approximately 1.3 million shares of common stock for $75.4 million and paid $121.9 million in quarterly cash dividends, returning a total of $197.3 million to shareholders.
Store Growth and Expansion
Tractor Supply continues to expand its national footprint to meet growing demand in rural and suburban markets. During the third quarter of 2025, the company opened 29 new Tractor Supply stores and closed one Petsense by Tractor Supply location as part of its ongoing network optimization.
The retailer’s growth strategy includes new store openings, remodels, and the integration of omni-channel services such as same-day delivery and curbside pickup. These investments are aimed at improving customer convenience and enhancing Tractor Supply’s position as a one-stop shop for rural lifestyle needs.
Strategic Focus: Life Out Here 2030
The company continues to execute its long-term strategic plan, Life Out Here 2030, centered on enhancing customer engagement, expanding product offerings, and building a stronger operational foundation. The plan focuses on technology investments, supply chain efficiency, and workforce development to sustain growth and profitability over the coming decade.
Key initiatives under the strategy include:
- Enhancing Customer Experience: Expanding loyalty programs, upgrading the Tractor Supply mobile app, and improving in-store and digital touchpoints.
- Category Growth: Strengthening key product categories such as animal feed, pet care, hardware, and outdoor living.
- Supply Chain Optimization: Increasing automation and efficiency across distribution centers to reduce delivery times and improve inventory availability.
- Community Commitment: Supporting local agricultural and rural communities through outreach programs, youth education, and sustainability efforts.
