Tractor Supply(US:TSCO)2025-10-23 11:00Financial Performance - Net sales for Q3 2025 increased 7.2% to $3.72 billion from $3.47 billion in Q3 2024, driven by comparable store sales growth of 3.9%[3] - Gross profit rose 7.7% to $1.39 billion, with a gross margin rate of 37.4%, up 15 basis points from 37.2% in the prior year[4] - Selling, general and administrative expenses increased 8.4% to $1.05 billion, representing 28.1% of net sales, up from 27.8% in Q3 2024[5] - Operating income increased 5.6% to $342.7 million, with an effective income tax rate of 21.0%, down from 22.3% in the prior year[6] - Net income increased 7.4% to $259.3 million, with diluted EPS rising 8.6% to $0.49 compared to $0.45 in Q3 2024[8] - Net income for the nine months ended September 27, 2025, was $868,680 thousand, slightly up from $864,834 thousand in the same period of 2024, indicating a growth of 0.2%[27] Store Operations - The company opened 29 new Tractor Supply stores and closed one Petsense store in Q3 2025[9] - The company operates 2,364 Tractor Supply stores and 206 Petsense stores as of September 27, 2025[15] - Comparable store sales increased by 3.9% in the three months ended September 27, 2025, compared to a decrease of 0.2% in the same period of 2024[29] - The company opened 29 new Tractor Supply stores in the three months ended September 27, 2025, compared to 16 in the same period of 2024, reflecting a growth in store count[29] Financial Guidance - For FY 2025, the company narrowed its guidance for net sales growth to +4.6% to +5.6% and comparable store sales growth to +1.4% to +2.4%[10] Shareholder Returns - The company repurchased approximately 1.3 million shares for $75.4 million and paid $121.9 million in quarterly cash dividends, totaling $197.3 million returned to shareholders[8] - The company’s share repurchase program cost $75,904 thousand in the three months ended September 27, 2025, down from $151,342 thousand in the same period of 2024[29] Capital Expenditures and Cash Flow - Capital expenditures totaled $629,213 thousand for the nine months ended September 27, 2025, compared to $538,018 thousand in the same period of 2024, an increase of 16.9%[32] - The company reported a net cash provided by operating activities of $1,310,425 thousand for the nine months ended September 27, 2025, compared to $903,610 thousand in 2024, an increase of 45.0%[27] Assets and Liabilities - Total assets increased to $10,876,602 thousand in 2025 from $9,767,897 thousand in 2024, representing a growth of 11.3%[25] - Total liabilities rose to $8,303,417 thousand in 2025 from $7,479,137 thousand in 2024, marking an increase of 11.0%[25] Inventory and Transaction Value - Average transaction value increased to $59.48 in the three months ended September 27, 2025, from $58.87 in the same period of 2024, a rise of 1.0%[29] - The average inventory per store increased to $1,201.5 thousand in the nine months ended September 27, 2025, from $1,161.6 thousand in the same period of 2024, reflecting a growth of 3.4%[29] Strategic Initiatives - The company is focused on enhancing customer experience and expanding capabilities as part of its Life Out Here 2030 strategic initiatives[2]