Tractor Supply forecasts annual results below estimates as big-ticket spending weakens

Jan 29 (Reuters) - Tractor Supply TSCO.N on Thursday forecast annual sales and profit below estimates as demand for heavy-duty farming equipment in the U.S. stays muted amid economic uncertainty.

The company also missed estimates for fourth-quarter net sales, taking its shares down about 5% in premarket trading.

The results reflected a shift in consumer spending, with essential categories remaining resilient and discretionary demand moderating, Tractor Supply's CEO Hal Lawton said.

Import tariffs in the U.S. have also raised some input costs for the company; its gross margin rate fell to 35.1% in the quarter from 35.2% a year ago.

The Blue Mountain-parent has raised some prices to offset tariff impact, while offering promotions on other products for budget-conscious consumers.

Tractor Supply expects fiscal 2026 net sales to grow between 4% and 6%, compared with analysts' average estimate of a 6.3% rise to $16.61 billion, according to data compiled by LSEG.

The company's annual earnings per share target range of $2.13 to $2.23 was also below estimates of $2.31.

For the quarter ended December 27, the company's net sales rose about 3% to $3.90 billion, falling just short of estimates of $4 billion.

Its quarterly comparable store sales rose 0.3%, compared with estimates of a 2.28% rise.

Net income for the quarter fell 3.8% from a year ago to $297.7 million.