Harry Lawton on tariffs
From Tractor Supply Co TSCO Q3 2025 Earnings Call · · Fyfull
“Our top priority really is to continue to be that advocate of value for our customers. Our guidance implies that we're going to continue to navigate the additional costs that flow through to the P&L in Q4 as a results of these tariffs. Where we do take price, we're going to continue to be surgical. We do have a portfolio approach. As you know, Q is such a big part of our business, 40 to 45% and you think about that and mostly domestic based on that. It continues to be operating within kind of a line in line with where we are kind of today and foresee that kind of going forward.”
On , Harry Lawton, President, CEO & Director at Tractor Supply Company, spoke about tariffs during Tractor Supply Co TSCO Q3 2025 Earnings Call on Fyfull.
About Harry Lawton
During Tractor Supply’s earnings calls in 2025 and early 2026, Lawton discussed the company’s performance and outlook amid tariff and consumer spending pressures. In the Q1 2025 call, he stated that over 60% of the company’s business comes from products manufactured, bagged, assembled, or grown in the U.S., and that direct imports from China had been reduced from over 90% to below 70%, with a target of 50% by year end. He said the company would take a “surgical” approach to pricing on tariff-affected products, prioritizing value perception and margin sustainability. In Q2 2025, Lawton reported record quarterly net sales of $4.44 billion and a 1.5% comparable store sales increase, and he described rural America as “doing very well” with strong consumer confidence and domestic migration. In Q3 2025, he noted a 7.2% net sales increase to a third-quarter record of $3.72 billion, with comparable store sales up 3.9%, and highlighted record customer satisfaction scores and Neighbors Club membership representing over 80% of sales. In the Q4 2025 call, Lawton acknowledged that fourth-quarter results fell below expectations, attributing the shortfall to a shift in consumer spending toward essential categories and the absence of emergency response sales that had boosted the prior year. He said the company was planning for a “wide range of demand outcomes” in 2026 and remained committed to its long-term comp sales algorithm. On the Q1 2026 call, Lawton stated that the company’s customer base remained “very stable” and focused on needs-based spending, with active customer counts growing despite modest reductions in frequency and basket size. He also noted that gross margin faced ongoing pressure from tariffs, cost inflation, and freight, which the company was actively managing.