April 25 (Reuters) - Tractor Supply ( TSCO ) beat Wall

Street expectations for first-quarter profit on Thursday, as

easing transport costs and steady demand for the farming

supplies retailer's pet food and gardening products bolstered

its margins.

Demand for the company's products held up as consumers

stretched their inflation-constrained budgets to spend on

consumables and need-based categories including dog and cat

food, fertilizers and other farm supplies.

The company's margins also benefited from its

everyday-low-price strategy - which involves offering

consistently low prices on its products throughout the year -

and its Neighbor's Club loyalty program, along with lower

transport costs and efficient product cost management.

Tractor Supply's ( TSCO ) quarterly gross margins expanded 50 basis

points to 36%.

The company reported net income of $198.2 million for the

quarter ended March 30, higher than $183.1 million last year.

Analysts on average expected $186.4 million, according to LSEG

data.

"We saw several positive signs in our business during the

quarter, including ongoing market share gains, transaction

growth and strength in big ticket sales," CEO Hal Lawton said.

For the first quarter, the company posted net sales of $3.39

billion, roughly in line with analysts' average estimate of

$3.40 billion. It earned $1.83 per share, above estimates of

$1.72 per share.

The Tennessee-based company also reaffirmed its annual

sales and profit forecasts.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by

Devika Syamnath)