Tractor Supply Co. net sales and digital sales grew at comparable rates in its fiscal second quarter, which ended June 28.
In its Q2, Tractor Supply net sales increased $4.44 billion. That’s up 4.5% from $4.25 billion the prior year. Meanwhile, comparable store sales increased 1.5% and average transactions grew 1%, according to the company.
Tractor Supply attributed the increase in net sales primarily to new store openings and the growth of comparable store sales. In its Q2 2024, Tractor Supply comparable sales had decreased 0.5%. The retailer also opened 24 new Tractor Supply locations in the quarter, in addition to two Petsense stores. It closed one Petsense store during the quarter.
Additionally, Tractor Supply credited “continued momentum in year-round categories,” which included consumable, usable and edible products. It cited “solid demand for spring seasonal items” and said sales performance was positive in apparel, gift and decor, and big-ticket items. However, “select discretionary categories,” which it did not define, partially offset the gains in other categories.
President and CEO Harry Lawton told investors on Tractor Supply’s Q2 earnings call that the retailer is “pleased with the record results” it delivered “despite ongoing macroeconomic uncertainty.”
He noted four highlights of the quarter:
- Comparable transaction growth
- Customer engagement, which includes the total number of customers that shopped with the retailer and new customer growth
- Increase in average unit retail
- Sequential comparable sales improvement by quarter (versus year over year)
Tractor Supply ranks No. 88 in the Top 2000 Database. The database is Digital Commerce 360’s rankings of the largest North American online retailers based on their annual ecommerce sales.
Tractor Supply digital sales in Q2
In Q2, Tractor Supply digital sales grew “at a mid-single-digit rate,” Lawton told investors without specifying.
He said store-fulfilled orders are the most popular fulfillment option for Tractor Supply’s digital sales, accounting for 80% of digital orders. That reflects the “convenience and strategic placement” of Tractor Supply’s more than 2,300 stores across rural America, he added.
“We saw robust performance in deliver-from-store and same-day delivery, which reinforces the unique advantage of our local presence in the communities we serve,” Lawton said. “Together, these capabilities enhance convenience for our customers and drive continued momentum in our digital ecosystem.”
Tractor Supply’s “Neighbor’s Club” loyalty program also drove customer engagement in the quarter, Lawton said. It had all-time highs across several customer metrics, he said. Those included:
- Ending the quarter with a record 41 million members, who accounted for more than 80% of total sales.
- Record total customer count; he did not specify the amount.
- An “all-time high in high-value customers,” which he did not define.
How tariffs will impact Tractor Supply
“Looking ahead to the second half of 2025, we recognize the uncertainty that remains from macroeconomic pressures to evolving tariffs,” Lawton said.
Tractor Supply’s assortment of products is “predominantly U.S. sourced,” Lawton said. He added that he believes because of this sourcing, along with trusted vendor relationships and a scalable supply chain, Tractor Supply is “well-positioned to navigate near-term volatility.”
Chief financial officer Kurt Barton noted that the current tariff landscape is creating “added cost pressure.”
Tractor Supply is proactively addressing this in working with its supply chain and vendor partners to mitigate tariffs’ impacts, he told investors.
“As to timing, we have seen the tariff impact begin to come through on our direct imports,” Barton said. “There have been modest cost concessions on non-direct inventory. At this point, there has been limited impact to the average unit retail. All of this aligns with our expectations that the impacts related to tariffs will primarily occur in the second half of this year and beyond.”
Barton also reaffirmed its guidance that net sales will increase 4% to 8% in Tractor Supply’s fiscal 2025.
As for tariffs could affect Q4 and the holiday season at large, Lawton said Tractor Supply is “maintaining a lot of flexibility with all of our eyes on the Aug. 1 tariff deadline.”
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