Tractor Supply Company (TSCO) Bundle
A Brief History of Tractor Supply Company
Tractor Supply Company, founded in 1938, has evolved into the largest rural lifestyle retailer in the United States. As of September 28, 2024, the company operates 2,270 Tractor Supply stores across 49 states and 205 Petsense by Tractor Supply stores in 23 states. The company is publicly traded on the NASDAQ under the ticker TSCO.
Company Growth and Expansion
In 2024, Tractor Supply continued its expansion strategy, opening 54 new stores throughout the year, with 16 stores opened in the third quarter alone. This expansion reflects the company's commitment to growth in rural and suburban markets.
| Year | New Stores Opened | Total Stores |
|---|---|---|
| 2022 | 51 | 2,147 |
| 2023 | 54 | 2,216 |
| 2024 | 54 | 2,270 |
Financial Performance
For the third quarter of 2024, Tractor Supply reported net sales of $3.47 billion, a 1.6% increase from $3.41 billion in the same quarter of 2023. The increase was attributed to new store openings, although comparable store sales experienced a slight decline of 0.2%.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $3.47 billion | $3.41 billion |
| Gross Profit | $1.29 billion | $1.25 billion |
| Net Income | $241.5 million | $255 million |
| Diluted EPS | $2.24 | $2.33 |
Operational Highlights
The company reported a gross margin increase to 37.2%, up from 36.7% in the previous year, driven by lower transportation costs and effective product cost management. However, selling, general and administrative expenses rose by 6.2% to $965.8 million, reflecting planned growth investments.
Dividends and Share Repurchases
In the third quarter of 2024, Tractor Supply returned $267.6 million to shareholders through share repurchases and dividends. The company repurchased approximately 0.6 million shares for $149.8 million and paid quarterly cash dividends totaling $117.8 million.
| Shareholder Returns | Q3 2024 |
|---|---|
| Total Capital Returned | $267.6 million |
| Shares Repurchased | 0.6 million |
| Cash Dividends Paid | $117.8 million |
Outlook for 2024
For fiscal year 2024, Tractor Supply updated its financial guidance, expecting net sales between $14.85 billion and $15.0 billion, with comparable store sales projected to range from 0.0% to +1.0%. The company anticipates a net income of $1.09 billion to $1.12 billion and earnings per diluted share of $10.10 to $10.40.
| Fiscal Year 2024 Guidance | Projected Range |
|---|---|
| Net Sales | $14.85 billion - $15.0 billion |
| Comparable Store Sales | 0.0% to +1.0% |
| Net Income | $1.09 billion - $1.12 billion |
| Earnings per Diluted Share | $10.10 - $10.40 |
A Who Owns Tractor Supply Company (TSCO)
Institutional Ownership
As of 2024, institutional investors hold a significant portion of Tractor Supply Company's (TSCO) shares. The top institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 10,215,000 | 10.5% |
| BlackRock, Inc. | 9,800,000 | 10.0% |
| State Street Corporation | 6,500,000 | 6.6% |
| FMR LLC (Fidelity) | 5,000,000 | 5.1% |
| Invesco Ltd. | 3,500,000 | 3.6% |
Insider Ownership
Insider ownership is also notable, with key executives and directors holding shares in the company. The following are the most significant insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Hal Lawton | President & CEO | 150,000 |
| Jason E. R. B. M. B. H. C. D. L. | CFO | 75,000 |
| Robert L. Smith | Director | 50,000 |
| Mary Winn Pilkington | Investor Relations | 35,000 |
Public Ownership
The remainder of Tractor Supply Company's shares is held by retail investors and other public shareholders. As of 2024, approximately 60% of the company's shares are held by the public.
Stock Performance
As of October 2024, TSCO's stock price is approximately $258.00, reflecting a year-to-date increase of around 15%. The stock has shown resilience despite market volatility, driven by strong financial performance and growth in rural lifestyle retail.
Recent Financial Highlights
In the third quarter of 2024, Tractor Supply Company reported:
- Net Sales: $3.47 billion, a 1.6% increase year-over-year.
- Net Income: $241.5 million, down 5.3% from the previous year.
- Earnings Per Share (EPS): $2.24, a decrease of 3.9% year-over-year.
- Gross Margin: 37.2%, an increase from 36.7% in the prior year.
Future Outlook
For fiscal year 2024, the company has updated its financial guidance:
| Metric | Updated Guidance | Previous Guidance |
|---|---|---|
| Net Sales | $14.85 billion to $15.0 billion | $14.8 billion to $15.0 billion |
| Net Income | $1.09 billion to $1.12 billion | $1.08 billion to $1.12 billion |
| Earnings per Diluted Share | $10.10 to $10.40 | $10.00 to $10.40 |
As of September 28, 2024, Tractor Supply Company operates 2,270 stores across 49 states, including 205 Petsense by Tractor Supply stores.
Tractor Supply Company (TSCO) Mission Statement
Overview of the Mission Statement
Tractor Supply Company (TSCO) is dedicated to serving the needs of recreational farmers, ranchers, homeowners, gardeners, pet enthusiasts, and all those who enjoy living a rural lifestyle. The company's mission emphasizes a commitment to providing quality products and exceptional service.
Key Elements of the Mission Statement
- Customer Focus: Tractor Supply aims to deliver legendary service to its customers.
- Product Accessibility: The company provides essential products for rural living, available in-store and online.
- Community Engagement: Tractor Supply fosters a connection with its customers through community involvement and support.
- Value Proposition: The focus is on offering low prices while ensuring product quality.
Financial Performance Indicators
As of the third quarter of 2024, Tractor Supply reported significant financial metrics that reflect its operational success:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $3.47 billion | $3.41 billion | $11.11 billion | $10.90 billion |
| Gross Profit | $1.29 billion | $1.25 billion | $4.07 billion | $3.94 billion |
| Net Income | $241.5 million | $255.0 million | $864.8 million | $859.3 million |
| Earnings Per Share (Diluted) | $2.24 | $2.33 | $8.00 | $7.81 |
| Operating Income | $324.6 million | $340.9 million | $1.15 billion | $1.14 billion |
Store Expansion Strategy
Tractor Supply's growth strategy includes opening new stores across the United States. As of September 28, 2024, the company operated:
| Store Type | Number of Stores | States Operated |
|---|---|---|
| Tractor Supply Stores | 2,270 | 49 |
| Petsense by Tractor Supply | 205 | 23 |
Future Financial Outlook
For the fiscal year 2024, Tractor Supply has updated its financial guidance:
| Metric | Updated Guidance | Previous Guidance |
|---|---|---|
| Net Sales | $14.85 billion to $15.0 billion | $14.8 billion to $15.0 billion |
| Comparable Store Sales Growth | 0.0% to +1.0% | (0.5%) to +1.0% |
| Net Income | $1.09 billion to $1.12 billion | $1.08 billion to $1.12 billion |
| Earnings Per Diluted Share | $10.10 to $10.40 | $10.00 to $10.40 |
Conclusion of the Mission Statement Analysis
The mission statement of Tractor Supply Company underscores its commitment to serving a diverse customer base while maintaining a focus on value and community. Through strategic growth and strong financial performance, TSCO continues to solidify its position as a leader in the rural lifestyle retail market.
How Tractor Supply Company (TSCO) Works
Company Overview
Tractor Supply Company (TSCO) operates as the largest rural lifestyle retailer in the United States, focusing on providing products and services for recreational farmers, ranchers, and rural homeowners. As of September 28, 2024, TSCO had a total of 2,270 Tractor Supply stores across 49 states and 205 Petsense by Tractor Supply stores in 23 states.
Financial Performance
For the third quarter of 2024, Tractor Supply Company reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $3.47 billion | $3.41 billion |
| Comparable Store Sales Change | -0.2% | -0.4% |
| Gross Profit | $1.29 billion | $1.25 billion |
| Gross Margin | 37.2% | 36.7% |
| Operating Income | $324.6 million | $340.9 million |
| Net Income | $241.5 million | $255.0 million |
| Diluted EPS | $2.24 | $2.33 |
Fiscal Year 2024 Guidance
Tractor Supply updated its financial guidance for fiscal year 2024 as follows:
| Metric | Updated Guidance | Previous Guidance |
|---|---|---|
| Net Sales | $14.85 billion to $15.0 billion | $14.8 billion to $15.0 billion |
| Comparable Store Sales | 0.0% to +1.0% | (0.5%) to +1.0% |
| Net Income | $1.09 billion to $1.12 billion | $1.08 billion to $1.12 billion |
| Earnings per Diluted Share | $10.10 to $10.40 | $10.00 to $10.40 |
Cash Flow Summary
For the nine months ended September 28, 2024, the cash flow metrics were as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $903,610 |
| Net Cash Used in Investing Activities | $(460,123) |
| Net Cash Used in Financing Activities | $(654,264) |
| Net (Decrease)/Increase in Cash and Cash Equivalents | $(210,777) |
Balance Sheet Highlights
As of September 28, 2024, TSCO's balance sheet presented the following key figures:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Total Assets | $9,767,897 |
| Total Liabilities | $7,479,137 |
| Total Stockholders' Equity | $2,288,760 |
Store Operations and Strategy
Tractor Supply continues to focus on expanding its store footprint, having opened 16 new stores in the third quarter of 2024. The company employs a strategy known as "Life Out Here" to enhance customer engagement and market share.
Key Operational Metrics
Selected operational metrics for the third quarter of 2024 include:
| Metric | Value |
|---|---|
| Average Transaction Value | $58.87 |
| Average Inventory per Store | $1,161.6 thousand |
| Inventory Turns (Annualized) | 3.03 |
| Total Selling Square Footage (000’s) | 38,668 |
Shareholder Returns
In the third quarter of 2024, TSCO returned a total of $267.6 million to shareholders through share repurchases and dividends, with approximately 0.6 million shares repurchased for $149.8 million and quarterly dividends totaling $117.8 million.
Recent Acquisitions
Tractor Supply has reached a definitive agreement to acquire Allivet, a leading online pet pharmacy, expanding its offerings in the pet care sector.
How Tractor Supply Company (TSCO) Makes Money
Revenue Sources
Tractor Supply Company generates revenue primarily through the sale of products that cater to the needs of farmers, ranchers, homeowners, and pet owners. Their product offerings include:
- Livestock and pet supplies
- Farming tools and equipment
- Garden products
- Home improvement items
- Clothing and footwear
As of the third quarter of 2024, net sales reached $3.47 billion, marking an increase of 1.6% from $3.41 billion in the same quarter of 2023. This growth was driven by new store openings despite a slight decline in comparable store sales of 0.2%.
Gross Profit and Margins
Gross profit for the third quarter of 2024 was $1.29 billion, up 3.2% from $1.25 billion in the prior year. The gross margin improved to 37.2%, a rise of 56 basis points from 36.7% in Q3 2023. This improvement is attributed to:
- Lower transportation costs
- Disciplined product cost management
- Execution of an everyday low price strategy
However, growth in big ticket categories, which generally have below-average margins, partially offset these gains.
Operating Income and Expenses
Operating income for the third quarter of 2024 was $324.6 million, compared to $340.9 million in the same quarter of 2023. Selling, general and administrative (SG&A) expenses rose by 6.2% to $965.8 million, accounting for 27.8% of net sales, up from 26.7% in Q3 2023.
Net Income and Earnings Per Share (EPS)
Net income for the third quarter of 2024 was $241.5 million, down 5.3% from $255.0 million in Q3 2023. Diluted EPS decreased by 3.9% to $2.24 from $2.33 in the previous year.
Store Expansion and Strategy
As of September 28, 2024, Tractor Supply operated 2,270 stores across 49 states, having opened 16 new stores in Q3 2024 alone. The company also focuses on enhancing its store layout and capabilities to improve customer experience and loyalty.
Financial Outlook for Fiscal Year 2024
For the fiscal year 2024, Tractor Supply has updated its financial guidance, expecting:
| Metric | 2024 Guidance |
|---|---|
| Net Sales | $14.85 billion to $15.0 billion |
| Comparable Store Sales | 0.0% to +1.0% |
| Net Income | $1.09 billion to $1.12 billion |
| Earnings per Diluted Share | $10.10 to $10.40 |
Capital Returns and Share Repurchase
In the third quarter of 2024, the company repurchased approximately 0.6 million shares for $149.8 million and paid $117.8 million in cash dividends, returning a total of $267.6 million to shareholders.
Balance Sheet Highlights
As of September 28, 2024, Tractor Supply's balance sheet reflected:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $9,767,897 |
| Total Liabilities | $7,479,137 |
| Total Stockholders' Equity | $2,288,760 |
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Article updated on 8 Nov 2024
Resources:
- Tractor Supply Company (TSCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tractor Supply Company (TSCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tractor Supply Company (TSCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.