Tractor Supply reported Q3 2025 earnings today and had strong year over year sales. They saw a 7.2% increase in revenue, with 3.9% growth in comparable store sales.
The Tractor Supply team delivered a strong third quarter. This performance was driven by ongoing share gains, agile execution through an extended summer season and healthy transaction growth.
Hal Lawton, President and CEO of Tractor Supply
Those positive growth trends didn’t carry over to the grill category. Tractor supply was seeing success with grills over the past year and a half as they leaned more heavily into the category. Unfortunately, there were negative trends in big ticket discretionary purchases.
In discretionary and weather-dependent categories, particularly those in the fall season, such as recreational vehicles, grilling, safes and generators, sales continued to lag, reflecting both the cautious big ticket consumer and the absence of storm-related activity this year.
Hal Lawton, President and CEO of Tractor Supply
Mostly unrelated to grills because of the selling season, but Tractor Supply is predicting more positive comps in Q4. Winter weather has a big impact on their business, so they gave a pretty wide guidance for the quarter.
For the fourth quarter, we anticipate comparable store sales growth in the range of 1% to 5%, reflecting a wider set of possible outcomes given the current consumer environment. And keep in mind, winter weather is often the primary driver of our fourth quarter business, more so than the holidays and the related gift buying. As a result of this outlook, we are narrowing our fiscal 2025 guidance range. We now expect net sales growth of 4.6% to 5.6%, comparable store sales growth of 1.4% to 2.4%, operating margin between 9.5% and 9.7% and diluted EPS in the range of $2.06 to $2.13.
Kurt Barton, EVP, CFO and Treasurer at Tractor Supply
New Stores and Digital Growth
Tractor Supply, like other large hardware retailers, are continuing to see success in their digital sales. Having a network of rural stores helps with their distribution model because of the high percentage of store fulfillment.
We also continue to execute well across our strategic initiatives and operational priorities. Digital sales grew at a low double-digit rate, representing a notable sequential improvement from the second quarter. Nearly 80% of online orders were fulfilled by our stores, highlighting the strength of our local network and store base. Same-day delivery and deliver from store outperformed, reinforcing the convenience and reliability of our model and the value of the final mile capabilities that we’re building out
Hal Lawton, President and CEO of Tractor Supply
Tractor Supply is continuing to expand their store count too. This will help them with in-store coverage, but it also adds to their distribution network.
As we look to 2026, we expect to open 100 new stores compared to 90 this year. This increase reflects our continued confidence in the strength of our new store economics and the long-term growth potential of our model. We anticipate a consistent pace of openings throughout the year.
Kurt Barton, EVP, CFO and Treasurer at Tractor Supply