Tractor Supply(US:TSCO)2025-07-24 11:02Financial Performance - Net sales for Q2 2025 increased 4.5% to $4.44 billion from $4.25 billion in Q2 2024, driven by new store openings and growth in comparable store sales[3] - Comparable store sales rose 1.5%, compared to a decrease of 0.5% in the prior year's Q2, with a 1.0% increase in average transaction count and 0.5% growth in average ticket size[3] - Gross profit increased 5.4% to $1.64 billion, with a gross margin rate of 36.9%, up from 36.6% in the prior year, due to disciplined product cost management[4] - Operating income increased 2.9% to $577.8 million from $561.5 million in Q2 2024[6] - Net income rose 1.1% to $430.0 million, with diluted EPS increasing 2.8% to $0.81 compared to $0.79 in Q2 2024[8] Expenses and Investments - SG&A expenses rose 6.8% to $1.06 billion, representing 23.9% of net sales, up from 23.4% in Q2 2024, primarily due to planned growth investments[5] - Capital expenditures totaled $210.3 million in the three months ended June 28, 2025, compared to $192.6 million in the same period of 2024, an increase of 9.0%[32] Store Operations - The company opened 24 new Tractor Supply stores and two new Petsense by Tractor Supply stores during Q2 2025[9] - Comparable store sales increased by 1.5% in the three months ended June 28, 2025, compared to a decrease of 0.5% in the same period of 2024[29] - The company opened 24 new Tractor Supply stores in the three months ended June 28, 2025, compared to 21 in the same period of 2024, marking a 14.3% increase in new store openings[29] Cash Flow and Assets - Net cash provided by operating activities rose to $1,002,575 thousand in the first six months of 2025, compared to $817,343 thousand in the same period of 2024, an increase of 22.6%[27] - Total assets increased to $10,558,795 thousand in 2025 from $9,784,524 thousand in 2024, representing a growth of 7.9%[25] - Total liabilities increased to $8,068,486 thousand in 2025 from $7,479,192 thousand in 2024, representing an increase of 7.9%[25] Shareholder Returns - The company plans to repurchase shares in the range of $325 to $375 million for FY 2025, reflecting a more measured pace of repurchases[10] - The company repurchased shares costing $72,822 thousand in the three months ended June 28, 2025, compared to $140,546 thousand in the same period of 2024, a decrease of 48.2%[29] Earnings and Tax - The effective income tax rate for Q2 2025 was 23.2%, compared to 22.7% in Q2 2024[8] - Retained earnings grew to $7,275,739 thousand in 2025 from $6,667,975 thousand in 2024, an increase of 9.1%[25] - The company reported a net income of $609,412 thousand for the six months ended June 28, 2025, down from $623,363 thousand in the same period of 2024, a decrease of 2.5%[27]