Tractor Supply Company is the largest rural lifestyle retailer in the United States, focused on supplying the needs of recreational farmers, ranchers, and all those who enjoy living the rural lifestyle, which the Company refers to as the "Out Here" lifestyle. The Company operates retail stores under the names Tractor Supply Company and Petsense by Tractor Supply, located primarily in towns outlying major metropolitan markets and in rural communities. At December 27, 2025, the Company operated 2,602 ¹ retail stores in 49 states, comprising 2,395 ² Tractor Supply retail stores and 207 ³ Petsense by Tractor Supply retail stores. The Company also offers an expanded assortment of products through the Tractor Supply mobile application and online at TractorSupply.com, Petsense.com, and Allivet.com.

The Company operates in a highly competitive retail industry, competing with general merchandise retailers, home center retailers, pet retailers, specialty and discount retailers, independently-owned retail farm and ranch stores, numerous privately-held regional farm store chains and farm cooperatives, as well as internet-based retailers. The Company believes it successfully differentiates itself from many of these retailers by focusing on its specialized market niche for customers living the rural lifestyle. The Company's Owned Brands and Exclusive Product Categories, collectively, represented approximately 30% ⁴ of total sales in fiscal 2025, compared to 29% ⁵ in fiscal 2024 and 29% ⁶ in fiscal 2023.

The Company generates revenue through the retail sale of products that support the rural lifestyle, operating as a single reportable segment. The Company's product assortment is tailored to meet the needs of customers in various geographic markets, offering approximately 17,000 to 25,000 ⁷ products per store as well as over 300,000 ⁸ products online. No single product accounted for more than 10% ⁹ of sales during fiscal 2025. The Company employs an "everyday low price" philosophy complemented by limited and strategically planned promotions, and drives customer engagement through its Neighbor's Club loyalty program.

The Company's comprehensive merchandise selection is comprised of five major product categories. Livestock, Equine & Agriculture, which includes livestock and equine feed & equipment, poultry, fencing, and sprayers & chemicals, represented 27% ¹⁰ of net sales in fiscal 2025, compared to 26% ¹¹ in fiscal 2024. Companion Animal, including food, treats and equipment for dogs, cats, and other small animals as well as dog wellness, represented 24% ¹² of net sales in fiscal 2025, consistent with 24% ¹³ in fiscal 2024. Seasonal & Recreation, which includes tractor & rider, lawn & garden, bird feeding, power equipment, and other recreational products, represented 24% ¹⁴ of net sales in fiscal 2025, consistent with 24% ¹⁵ in fiscal 2024. Truck, Tool & Hardware, including truck accessories, trailers, generators, lubricants, batteries, and hardware and tools, represented 15% ¹⁶ of net sales in fiscal 2025, compared to 16% ¹⁷ in fiscal 2024. Clothing, Gift & Décor, including clothing, footwear, toys, snacks, and decorative merchandise, represented 10% ¹⁸ of net sales in fiscal 2025, consistent with 10% ¹⁹ in fiscal 2024.

On December 30, 2024, the Company completed its acquisition of Allivet, an online pet pharmacy, for a purchase price of $135.0 million ²⁰, financed with cash on hand from the balance sheet. In fiscal 2025, the Company opened 99 ²¹ new Tractor Supply stores and five ²² new Petsense by Tractor Supply stores, and closed four ²³ Petsense by Tractor Supply stores. The Company repurchased approximately 6.6 million ²⁴ shares of common stock under its share repurchase program at a total cost of $361.0 million ²⁵, including the 1% excise tax. The Company's Board of Directors authorized an increase to the share repurchase program by $1.00 billion ²⁶ on February 12, 2025, bringing the total authorized amount to $7.50 billion ²⁷. The Company paid cash dividends totaling $487.7 million ²⁸ in fiscal 2025, with dividends declared of $0.92 ²⁹ per common share outstanding. The Company also completed a sale-leaseback of 41 ³⁰ Tractor Supply store locations, resulting in proceeds of $252.6 million ³¹ and a gain of $91.7 million ³².

Net sales increased 4.3% ³³ to $15.52 billion ³⁴ in fiscal 2025 from $14.88 billion ³⁵ in fiscal 2024. Comparable store sales increased 1.2% ³⁶ in fiscal 2025 as compared to an increase of 0.2% ³⁷ in fiscal 2024. Gross profit increased 4.8% ³⁸ to $5.65 billion ³⁹ in fiscal 2025 from $5.40 billion ⁴⁰ in fiscal 2024, and gross margin increased 16 ⁴¹ basis points to 36.4% ⁴² of net sales in fiscal 2025 from 36.3% ⁴³ of net sales in fiscal 2024. Operating margin decreased 41 ⁴⁴ basis points to 9.5% ⁴⁵ of net sales in fiscal 2025 from 9.9% ⁴⁶ of net sales in fiscal 2024. Net income was $1.10 billion ⁴⁷, or $2.06 ⁴⁸ per diluted share, compared to $1.10 billion ⁴⁹, or $2.04 ⁵⁰ per diluted share, in fiscal 2024. The Company ended fiscal 2025 with $194.1 million ⁵¹ in cash and cash equivalents and outstanding long-term debt of $1.77 billion ⁵².

The Company plans to open approximately 100 ⁵³ new Tractor Supply stores in fiscal 2026, representing a selling square footage increase of approximately 4% ⁵⁴. Projected capital expenditures, net of sale-leaseback proceeds, for fiscal 2026 are currently estimated to be in the range of approximately $675.0 million to $725.0 million ⁵⁵. Projected share repurchases for fiscal 2026 are currently estimated to be in a range of approximately $375.0 million to $450.0 million ⁵⁶.

The Company's long-term growth strategy includes expanding and deepening its customer base by providing personal, localized, and memorable customer engagements through content, social media, and digital shopping experiences. The Company plans to evolve customer experiences by digitizing business processes and furthering digital capabilities, and to offer relevant assortments and services across all channels through exclusive and national brands, growing its total addressable market by introducing new products and services through a test and learn strategy. The Company also plans to expand through selective acquisitions to add complementary businesses and enhance penetration into new and existing markets to supplement organic growth. Over the past five years, the Company has experienced a compounded annual growth rate of approximately 7.9% ⁵⁷ in net sales.

The Company is building a new distribution center located in Nampa, Idaho, which will expand the Company's distribution center capacity by approximately 865,000 ⁵⁸ square feet and is anticipated to begin operations in the fourth quarter of 2026 ⁵⁹. The Company continues to invest in technologies that enhance both customer and team member experiences, including data analytics, automation, and the responsible use of artificial intelligence. The Company also plans to continue its Project Fusion remodels and side lot garden center transformations, and to continue investing in store and digital technology.

The Company's capital allocation strategy includes planned capital expenditures for fiscal 2026 in the range of approximately $675.0 million to $725.0 million ⁶⁰, which includes plans to open approximately 100 ⁶¹ Tractor Supply stores, continue Project Fusion remodels and side lot garden center transformations, complete construction on the Nampa, Idaho distribution center, and continue investing in store and digital technology. The Company's projected share repurchases for fiscal 2026 are estimated to be in a range of approximately $375.0 million to $450.0 million ⁶². On February 10, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.24 ⁶³ per share of the Company's outstanding common stock.

The Company faces headwinds from general economic and geopolitical conditions that could impact consumer spending, including discretionary spending. A weakening of economic conditions affecting disposable consumer income such as lower employment levels, negative consumer outlook, uncertainty, instability or changes in business or political conditions, changes in interest rates, inflation/deflation, higher tax rates or tariffs, changes in the value of the U.S. dollar relative to other currencies, higher fuel and energy costs, higher labor and healthcare costs, and other economic matters could reduce consumer spending or cause consumers to shift spending to competitors. The Company also faces risks associated with purchase price volatility, including inflationary and deflationary pressures on product cost, which may impact consumer demand and, as a result, sales and gross margin.

The Company faces significant risks from the imposition of tariffs on imported products, which has increased costs and could result in reduced sales and profits. The Company sources a portion of its merchandise from manufacturers located outside the U.S., primarily in Asia and Central America, and many of its domestic vendors have a global supply chain. The U.S. has recently imposed new or higher tariffs on certain products imported into the U.S. from China and other countries and could propose additional tariffs. The Company continues to evaluate the impact of effective and potential tariffs on its supply chain, costs, sales, and profitability, as well as strategies to mitigate any negative impact, including negotiating with vendors, seeking alternative sourcing options, and adjusting retail selling prices.

Management's message emphasizes the Company's position as the largest rural lifestyle retailer in the United States and its focus on executing a multi-year strategy to drive sales and earnings growth. Key themes include expanding and deepening the customer base, evolving customer experiences through digital capabilities, offering relevant assortments and services, driving operational excellence and productivity, and expanding through selective acquisitions. Management highlights the Company's compounded annual growth rate of approximately 7.9% ⁶⁵ over the past five years and plans to open approximately 100 ⁶⁶ new Tractor Supply stores in fiscal 2026. The Company's projected capital expenditures, net of sale-leaseback proceeds, for fiscal 2026 are estimated to be in the range of approximately $675.0 million to $725.0 million ⁶⁷, and projected share repurchases for fiscal 2026 are estimated to be in a range of approximately $375.0 million to $450.0 million ⁶⁸.

For fiscal 2025, total net sales were $15,524,046,000 ⁶⁹ compared to $14,883,231,000 ⁷⁰ in fiscal 2024. Net income was $1,096,087,000 ⁷¹ in fiscal 2025 compared to $1,101,240,000 ⁷² in fiscal 2024. Diluted earnings per share were $2.06 ⁷³ in fiscal 2025 compared to $2.04 ⁷⁴ in fiscal 2024. Operating income was $1,467,389,000 ⁷⁵ in fiscal 2025 compared to $1,467,532,000 ⁷⁶ in fiscal 2024. Gross margin was 36.42% ⁷⁷ of net sales in fiscal 2025 compared to 36.26% ⁷⁸ in fiscal 2024. Net cash provided by operating activities was $1,635,259,000 ⁷⁹ in fiscal 2025 compared to $1,420,835,000 ⁸⁰ in fiscal 2024. The Company ended fiscal 2025 with cash and cash equivalents of $194,109,000 ⁸¹ and total outstanding debt of $1,780,000,000 ⁸², with long-term debt of $1,764,974,000 ⁸³. The effective income tax rate decreased to 21.6% ⁸⁴ for fiscal 2025 compared to 22.1% ⁸⁵ in fiscal 2024, driven primarily by the benefit associated with the purchase of transferable federal tax credits, partially offset by a reduction in the benefit from annual stock compensation activity.

The Company faces significant risks from the imposition of tariffs on imported products, which has increased costs and could result in reduced sales and profits, as the Company sources a portion of its merchandise from manufacturers located outside the U.S., primarily in Asia and Central America. The Company's total outstanding consolidated debt was approximately $1.77 billion ⁶⁴ as of December 27, 2025, and its level of indebtedness could restrict operations and make it more difficult to satisfy debt obligations. The Company is subject to risks associated with vendors from whom products are sourced, as it has no significant long-term contracts with suppliers and relies on long-term relationships. The Company also faces risks from unseasonal and extreme weather conditions, natural disasters, and climate change, which have historically affected the timing and volume of sales and results of operations. Additionally, the Company's failure to attract and retain qualified team members, increases in wage and labor costs, and changes in laws could adversely affect financial performance.