Tractor Supply Company ( TSCO ) shares are trading lower on Thursday.

The company reported fourth-quarter earnings per share of 44 cents, missing the street view of 46 cents. Quarterly sales of $3.77 billion missed the analyst consensus estimate of $3.78 billion.

Fourth-quarter net sales rose 3.1%, with a 0.6% increase in comparable store sales and a 2.3% growth in average transaction value. The increase in net sales was driven by new store openings and growth in comparable store sales. 

All merchandise categories performed within a relatively tight band.

The growth of consumable, usable and edible products was in line with the chain average as positive unit growth was offset by average unit price pressure.

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Gross profit increased 2.8% to $1.33 billion from $1.29 billion in the prior year’s fourth quarter, and gross margin decreased 9 basis points to 35.2%.

The company was lapping its most difficult gross margin comparison with 129 basis-points of expansion in the prior year.

“The fundamentals of our business remain strong with ongoing market share gains, record Neighbor’s Club members, digital sales in excess of one billion dollars and high-return new store openings,” said CEO Hal Lawton.

“We expect our 2025 comparable store sales to improve throughout the year as the macro headwinds impacting our business abate,” Lawton adds. 

The company opened 26 new Tractor Supply ( TSCO ) stores and four Petsense by Tractor Supply ( TSCO ) stores in the fourth quarter of 2024.

The company repurchased approximately 2.7 million shares of its common stock for $154.4 million and paid quarterly cash dividends totaling $117.3 million, returning a total of $271.7 million of capital to shareholders in the fourth quarter of 2024.

Tractor Supply ( TSCO ) exits the quarter with cash and equivalents worth $251.49 million, and inventories worth $2.840 billion. Long-term debt as of quarter end totaled $1.831 billion.

Outlook:

Tractor Supply ( TSCO ) expects FY25 earnings per share to be between $2.10 and $2.22, compared to the $2.15 estimate.

Net sales is expected to rise in the range of +5% to +7% on a year-over-year basis

Comparable Store Sales are expected to rise +1% to +3%.

Price Action: TSCO shares are trading lower by 4.62% to $54.52 premarket at last check Thursday.

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