Thu, May 8, 9:02 PM (14 days ago)
**Tractor Supply Company (TSCO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $3,466,952,000, up 2.1% YoY, driven by new store openings and Allivet acquisition, partially offset by a 0.9% decrease in comparable store sales. - **Gross Profit:** $1,255,422,000, up 2.8% YoY, with a gross margin increase of 25 basis points to 36.2%. - **Operating Income:** $249,137,000, down 5.3% YoY due to increased SG&A expenses and comparable store sales decline. - **Net Income:** $179,369,000, down 9.5% YoY, with earnings per share at $0.34. - **Cash Flow from Operations:** $216,775,000, down $40.6 million YoY due to changes in accrued expenses and net income. **Profit Margins:** - **Gross Margin:** 36.2%, up 25 basis points YoY. - **Operating Margin:** 7.19%, down from 7.75% YoY. - **Net Margin:** 5.17%, down from 5.84% YoY. **Cash Flow and Earnings Changes:** - **Cash Flow from Investing Activities:** -$261,054,000, up $108.7 million in cash used YoY due to the Allivet acquisition. - **Cash Flow from Financing Activities:** $24,505,000, a $262.6 million improvement YoY due to incremental borrowing. **Quarterly Performance Discussion:** - **Sales Growth:** Driven by new stores and Allivet, offset by a comparable store sales decline. - **Margin Performance:** Gross margin improved due to cost management, while operating margin declined due to SG&A increases. - **Earnings:** Net income decreased due to higher expenses and lower comparable store sales. **Trends and Uncertainties:** - **Seasonality:** Tractor Supply's business is seasonal, with higher sales in Q2 and Q4. - **Weather Impact:** Unfavorable weather conditions can affect sales and results. - **Tariffs and Trade:** Changes in tariffs and trade policies could impact costs and sales. - **Allivet Acquisition:** The acquisition is expected to bring synergies and growth opportunities. **Future Operations Impact:** - **Store Growth:** Plans to open approximately 90 Tractor Supply stores and 10 Petsense stores in 2025. - **Capital Expenditures:** Projected to be between $650.0 million and $725.0 million for 2025. - **Dividends and Share Repurchases:** The company continues to pay dividends and repurchase shares, returning capital to stockholders. **Ticker:** TSCO