Tractor Supply cuts outlook below estimates on rural spending slowdown

Reuters
10/23
Tractor Supply cuts outlook below estimates on rural spending slowdown

Oct 23 (Reuters) - Farming supplies retailer Tractor Supply TSCO.O forecast full-year sales and profit largely below analyst estimates as results were hurt by cautious spending among rural consumers on big-ticket items as shoppers buy essential goods.Shares of the Brentwood, Tennessee-based company fell about 5% in premarket trading.Demand for non-essential, high-ticket goods such as trailers, power equipment and recreational products remains weak amid macroeconomic uncertainty and elevated interest rates.

The company said that while it predominantly sources from the United States, a volatile tariff environment has added cost pressures.

Tractor Supply now expects 2025 sales to rise between 4.6% and 5.6%, compared with the 4% to 8% expected previously. Analysts on average expected a 5.3% rise, according to data compiled by LSEG.

It expects fiscal 2025 profit of $2.06 to $2.13 per share, compared to a prior forecast of $2.00 to $2.18 per share; analysts were estimating $2.10.

Comparable store sales for the third quarter ended September 27 rose 3.9%, topping expectations for a 3.25% increase, helped by strong demand for spring and summer seasonal products.

The company also reported third-quarter profit of 49 cents per share, beating estimates of 48 cents per share.

(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Tasim Zahid)

((Sanskriti.Shekhar@thomsonreuters.com))

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