Core Viewpoint - Tractor Supply Company (TSCO) reported first-quarter 2025 results that fell short of expectations, with earnings decreasing year-over-year despite a slight increase in net sales [1][8]. Financial Performance - Earnings per share were reported at 34 cents, missing the Zacks Consensus Estimate of 37 cents, and down 8% from the prior year's quarter [1]. - Net sales increased by 2.1% year-over-year to $3.47 billion, but this also missed the Zacks Consensus Estimate of $3.55 billion [1]. - Comparable store sales declined by 0.9%, contrasting with a 1.1% increase in the same quarter last year [2]. Sales and Margins - Gross profit rose by 2.8% to $1.26 billion, with a gross margin increase of 25 basis points to 36.2% [3]. - Selling, general and administrative (SG&A) expenses increased by 5.1% year-over-year to $1.01 billion, with SG&A as a percentage of sales rising by 81 basis points to 29% [4]. - Operating income decreased by 5.3% year-over-year to $249.1 million, and the operating margin fell by 56 basis points to 7.2% [5]. Financial Position - At the end of the quarter, the company had cash and cash equivalents of $231.7 million, long-term debt of $2.1 billion, and total stockholders' equity of $2.2 billion [6]. - Net cash provided by operating activities was $216.8 million, with capital expenditures of $141.3 million during the same period [6]. Shareholder Returns - In the first quarter, the company repurchased 1.7 million shares for $94 million and paid out cash dividends totaling $122.4 million, returning $216.4 million to shareholders [7]. Outlook - For 2025, TSCO expects net sales growth of 4-8%, down from a previous estimate of 5-7%, and comparable store sales growth of 0-4%, revised from 1-3% [9]. - The operating margin is now forecasted between 9.5% and 9.9%, slightly lower than the previous range of 9.6% to 10% [9]. - For the second quarter of 2025, net sales growth is anticipated at approximately 3-4%, with earnings per diluted share expected between $0.79 and $0.81 [10].