Comparable store sales growth was driven by a 1% increase in transactions and a 0.5% increase in average ticket.
Diluted EPS was $0.81, reflecting a 2.8% increase year-over-year.
Gross margin expanded by 31 basis points to 36.9%, supported by disciplined product cost management and everyday low price strategy.
Merchandise inventories increased modestly by 1.5% per store to $3.1 billion to support improved in-stock levels and tariff impacts.
Operating income grew 2.9% to $577.8 million, and net income increased 1.1% to $430 million.
Returned $196 million to shareholders through dividends and share repurchases in the quarter.
Selling, general and administrative expenses increased by 51 basis points to 23.9%, reflecting planned investments and modest deleverage due to comparable sales levels.
Tractor Supply delivered record second quarter results with net sales growing 4.5% to $4.44 billion and comparable store sales increasing 1.5%.
Cash and equivalents totaled $659.6 million, up approximately $68 million from year-end.
Effective tax rate for the quarter was 24.9%, with full year 2025 expected between 26% and 26.5%.
Net cash flows from operations were $143.9 million year-to-date, up from $93 million prior year.
Operating income grew 11.7% to $51.4 million, while adjusted operating income grew 25.4% to $61.5 million compared to prior year.
Operating losses in Corporate and Other improved to $5.2 million from $9.8 million due to prior year acquisition-related expenses.
Revenue for the quarter was $209.6 million, a 26% increase from $166.7 million in the prior year quarter, positively impacted by the St. Augustine acquisition.
Second quarter operating performance exceeded expectations with net income of $41 million or $0.62 per diluted share, and adjusted earnings per diluted share of $0.67.
Segment revenues: CTU $118 million (+4.6%), AIU System $54.7 million (+1.9%), St. Augustine $36.7 million.
Total student enrollment increased 17.4% company-wide, with CTU up 7.4% and AIU System up 7.1%.
Adjusted operating margins declined to 3.5% from 6.0% last year, impacted by inflation in COGS (3.3%), labor (3.4%), health insurance, and higher operating expenses.
GAAP diluted earnings per share were $0.29, up from $0.28 last year; adjusted diluted EPS was $0.32, above guidance range of $0.22 to $0.27 but down from $0.45 last year.
Net debt was $867 million with leverage at 2.7x net debt to adjusted EBITDA and 4.1x lease adjusted net leverage; company aims to reduce lease-adjusted leverage below 3.0x.
Quarterly dividend declared at $0.15 per share; share repurchases are not planned currently.
Total revenues for Q2 2025 were $1 billion, slightly up from $999 million last year, driven by restaurant openings and closures.
U.S. comparable restaurant sales declined by 10 basis points, with traffic down 200 basis points, but results exceeded company expectations.
Dafinchi
