Overview
- Third-quarter EPS came in at $0.49 versus the $0.48 consensus, with sales of $3.719 billion up 7.2% year over year.
- Comparable store sales increased 3.9%, driven by a 2.7% gain in average transaction value, which management tied to share gains and an extended summer season.
- Gross profit grew 7.7% to $1.39 billion and the gross margin rate improved 15 basis points to 37.4%, partly offset by tariffs and higher transportation costs.
- Operating income rose 5.6% to $342.7 million as operating margin slipped to 9.2%, and the company opened 29 Tractor Supply stores while closing one Petsense location.
- Management narrowed 2025 GAAP EPS guidance to $2.06–$2.13 and trimmed sales to $15.567–$15.716 billion; shares closed up 2.8% to $56.35 as Telsey reiterated Outperform at $70 and Baird, Morgan Stanley, and Mizuho raised targets, with Morgan Stanley upgrading to Equal-Weight.