Tractor Supply Company (NASDAQ:TSCO) shares fell after the retailer posted a quarterly profit and revenue miss and warned that shoppers are pulling back on discretionary purchases.

Margins tightened as cost discipline was offset by tariff pressure, heavier promotions and higher delivery-related transportation expenses.

Quarterly Metrics

The company reported fourth-quarter earnings per share of 43 cents, missing the analyst consensus estimate of 47 cents.

Quarterly sales of $3.898 billion missed the Street view of $4 billion.

Fourth-quarter net sales rose 3.3% to $3.90 billion. Comparable store sales increased 0.3% during the period.

The increase in net sales was driven by new store openings, the growth in comparable store sales and the contribution from Allivet.

“Our fourth quarter results came in below our expectations and reflected a shift in consumer spending, with essential categories remaining resilient while discretionary demand moderated,” said Hal Lawton, President and Chief Executive Officer of Tractor Supply.

Gross profit rose 3.0% to $1.37 billion, up from $1.33 billion a year earlier.

Gross margin edged down to 35.1% from 35.2%. Cost controls helped, but tariffs, promotions and delivery transportation costs weighed.

Operating income decreased 6.5% to $297.7 million from $318.3 million in the fourth quarter of 2024. Net income decreased 3.8% to $227.4 million from $236.4 million.

The company opened 31 new Tractor Supply stores and one new Petsense by Tractor Supply store in the fourth quarter of 2025.

Tractor Supply exited the quarter with cash and equivalents worth $194.109 million. Inventories totaled $3.08 billion.

Outlook

Tractor Supply expects fiscal 2026 GAAP earnings of $2.13 to $2.23 per share, lower than the $2.32 analyst estimate.

For fiscal 2026, Tractor Supply expects net sales growth of 4% to 6% and comparable store sales growth of 1% to 3%.

The company also projects an operating margin rate of 9.3% to 9.6%.

Tractor Supply anticipates 2026 capex spending of $675 million to $725 million and stock buyback of $375 million to $450 million.

For 2026, the company plans to open about 100 Tractor Supply stores and continue Project Fusion remodels and garden center transformations.

It also aims to complete its 11th distribution center and keep investing in store and digital technology.

TSCO Price Action: Tractor Supply shares were down 4.83% at $52.47 at the time of publication on Thursday, according to Benzinga Pro data.

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