Tractor Supply Q3 sales rise 5.1%; to moderate new store openings
Tractor Supply Company delivered third-quarter earnings and sales that beat analyst expectations and said it was gaining share against most categories and metrics even as its customers remain cautious.
On the company’s earnings call, CEO Hal Lawton said that elevated interest rates and reduced housing mobility are weighing on property improvements and larger projects. Pet ownership headwinds, particularly new pet acquisition, continue to affect demand in certain categories.
“Across the farm economy, increases in commodity prices and operating costs are influencing purchasing decisions,” he told analysts. “Customers continue to spend but remain cautious.”
Lawton added that inflation, higher fuel costs, and broader uncertainty continued to weigh on household budgets and discretionary spending.
“Despite these pressures, our core customers remain engaged,” he said. “We are also encouraged by spending trends among younger customers and the performance of our rural stores.”
Double-digit growth in digital sales also contributed to Tractor Supply’s results. Digital sales increased approximately 16% in the quarter, with growth in both traffic and conversion.
“We continues to expand delivery and final mile capabilities, making it easier for customers to shop whenever and however they choose,” Lawton said.
Executives on the call also reaffirmed plans to moderate new store openings in 2027 to approximately 85 to 90 stores.
“This is a capital allocation decision, not a change in our view of the long-term new store opportunity of 3,200 sites,” said CFO Kurt Barton.
The company opened 23 new Tractor Supply stores and closed 74 Petsense by Tractor Supply stores during the quarter.
Third Quarter
Tractor Supply released its third-quarter results days after it announced that Fahim Siddiqui would join the rural lifestyle retailer as executive VP and chief technology and digital officer, effective Oct. 26. Reporting to Lawton, he will lead the retailer's enterprise technology and digital organizations.
[READ MORE: Tractor Supply taps Home Depot veteran for C-suite role]
Tractor’s Supply net income decreased 13.3% to $224.7 million for the quarter ended September 26. Earnings per share fell 11.6% to $0.43 compared to $0.49 in the year-ago period. Analysts had expected earnings per share of $0.40.
Net sales increased 5.1% to $3.91 billion, topping expectations of $3.81 billion. Sales were driven by new store openings, the acquisition of VIP Petcare and growth in comparable store sales.
Comparable store sales inched up 0.4%. The comp average ticket increased 0.7%, and and the comp average transaction count declined 0.3%.
Comparable store sales improved sequentially through the quarter, moving from negative in July to modestly positive in August to further strengthening in September. Results benefited from solid performance in seasonal categories including wildlife supplies, equine & livestock and truck, tool & hardware.
The company’s consumable, usable and edible categories performed above the company average. The gains were partially offset by continued softness in big-ticket and companion animal categories.
“Our third quarter marked a step forward for Tractor Supply, with improved sales momentum and broader strength across our business,” Lawton said in the earnings statement. “We are moving with urgency to sharpen our strategic priorities, drive productivity and make deliberate choices about where we invest our capital and resources. These efforts are designed to accelerate comparable store sales growth, restore operating margins and deliver attractive long-term shareholder returns."
Lawson added that the company’s progress in the quarter and the actions underway give it confidence in its ability to deliver within its full-year guidance.
As of Sept. 26, the company operated 2,486 Tractor Supply stores in 49 states and 135 Petsense by Tractor Supply stores in 21 states.
