Tractor Supply Declares $0.23 Quarterly Dividend

On May 15, 2025, Tractor Supply Company (NASDAQ: TSCO) announced a quarterly cash dividend of $0.23 per share. The dividend will be paid on June 10, 2025, to shareholders of record as of May 28, 2025.

Tractor Supply Q1 2025 Financial Summary

Headline Results
- Net sales: $3.47 billion (up 2.1% YoY)
- Comparable store sales: down 0.9%, driven by a 2.9% decrease in average ticket partially offset by a 2.1% increase in transaction count
- Net income: $179.4 million (down 9.5%)
- Diluted EPS: $0.34 (down from $0.37 in Q1 2024)
- Gross margin: 36.2% (up 25 bps)
- Operating income: $249.1 million (down 5.3%)
- SG&A expenses rose 5.1%, reaching $1.01 billion
- Cash and equivalents: $231.7 million

Operational Highlights
- 15 new Tractor Supply stores and 2 new Petsense stores opened, with 2 Petsense stores closed
- Exclusive brands contributed 30.7% of sales (up from 29.7%)
- Imports represented 11.2% of total sales
- Store count: 2,517 (2,311 Tractor Supply + 206 Petsense)
- Average transaction value: $56.87
- Inventory turns (annualized): 3.00 (down from 3.13)

Capital Allocation
- Repurchased 1.7 million shares for $94 million
- Paid $122.4 million in dividends
- $141.3 million in capex (mainly for new and existing stores and IT)

FY 2025 Guidance (Updated)
- Net sales growth: 4% to 8% (was 5% to 7%)
- Comparable store sales: 0% to 4% (was 1% to 3%)
- Operating margin: 9.5% to 9.9%
- Net income: $1.07 billion to $1.17 billion
- EPS: $2.00 to $2.18 (was $2.10 to $2.22)

Q2 2025 Outlook
- Net sales growth: 3% to 4%
- Comparable store sales: flat to up 1%
- EPS: $0.79 to $0.81

Tractor Supply Company reported a 3.1% increase in fourth-quarter net sales to $3.77 billion, with comparable store sales rising 0.6%. Full-year 2024 net sales grew 2.2% to $14.88 billion, supported by a modest 0.2% increase in comparable store sales. Fourth-quarter diluted EPS was $0.44, while full-year diluted EPS reached $2.04, reflecting stable profitability despite higher expenses.

Gross margin for 2024 improved 34 basis points to 36.3%, while SG&A expenses rose 4.8% due to investments in growth initiatives, including store expansions and a new distribution center. The company repurchased $560.8 million in shares and paid $472.5 million in dividends, returning over $1 billion to shareholders.

For 2025, Tractor Supply expects net sales growth of 5-7%, comparable store sales growth of 1-3%, and diluted EPS between $2.10 and $2.22. The company plans to open 90 new Tractor Supply stores and 10 new Petsense locations while expanding its distribution network and enhancing its store layouts through Project Fusion remodels.

CEO Hal Lawton emphasized the company’s long-term strategy, including its "Life Out Here 2030" initiatives and the acquisition of Allivet, an online pet pharmacy, to drive future growth. With a strong market position, digital sales exceeding $1 billion, and record Neighbor’s Club memberships, Tractor Supply remains optimistic about its growth potential despite economic headwinds.