- Provides Clear Roadmap to Achieve Robust Growth Outlook
- Accelerates New Store Growth Outlook as the Company Raises
Target for New Store Opportunity to 3,200 Stores, an Increase of
200 Sites
- Updates Long-Term Growth Outlook
- Announces 5-for-1 Stock Split
Tractor Supply Company (NASDAQ: TSCO), the largest rural
lifestyle retailer in the United States (the “Company”), announced
it will present its Life Out Here 2030 strategy later today at its
Investment Community Day. This strategy marks the next phase of its
growth plans.
“Tractor Supply has a rich history and track record of success.
Over the last five years, we have delivered strong financial
performance and enhanced our competitive advantages through the
execution of our Life Out Here strategy. With an expanded total
addressable market of $225 billion, we have significant runway for
growth. Our Life Out Here 2030 strategy continues the momentum of
our existing initiatives as well as launches new initiatives such
as Pet Rx and Direct Sales. We remain steadfast in our commitment
to drive sustainable growth and long-term value for our
shareholders. Tractor Supply has never been stronger and the next
five years are going to be very exciting,” said Hal Lawton,
president and chief executive officer of Tractor Supply.
Investment Community Day
Highlights
During the Investment Community Day, Tractor Supply’s executive
leadership team will share the significant progress the Company has
made over the last five years to transform its business and outline
the next phase of its strategic plan, Life Out Here 2030. Since
first introducing its Life Out Here strategy in October 2020, the
Company has scaled its Project Fusion store layout and remodel
program to about 50% of its stores, completed more than 550 garden
centers, added 22 million members to its Neighbor’s Club loyalty
program, grown its digital sales by more than 340% and opened 13
distribution facilities. The Company’s Life Out Here 2030 strategy
complements this progress with the addition of the following
strategic initiatives:
- Localization – Tailor product selection to meet specific
demographic and regional needs to maximize relevance while
remodeling store layout and adding updated features
- Direct Sales Opportunity – Extend its legendary customer
service to address the “Out Here” business-to-business market
including larger farms, small to medium businesses and event
spaces
- Pet and Animal Rx – Expand capabilities to grow share of wallet
with pet and animal customers while driving increased loyalty
through its more than 37 million Neighbor’s Club members
- Final Mile Delivery – Create a comprehensive and scalable final
mile delivery solution to provide greater order visibility and
delivery reliability to its customers and unlock the potential of
its direct sales opportunity
- Tractor Supply Retail Media Network – Scale comprehensive media
platform to support its brand partners and activate a new profit
stream
- Private / Exclusive Brands – Increase penetration of private
label and exclusive licensed brands to enhance differentiation and
improve gross margins
As part of its Life Out Here 2030 strategy, Tractor Supply is
updating its long-term financial algorithm. The Company’s
management will provide further insights on these financial targets
at today’s event.
Kurt Barton, executive vice president and chief financial
officer of Tractor Supply, commented, “Tractor Supply is committed
to building on our longstanding track record of creating
shareholder value. Capitalizing on our key competitive advantages
and the ongoing strength of our current initiatives, along with
investments in new growth opportunities, positions us well to
continue gaining market share."
Targets
Net Sales
+6% to +8%
Comparable Store Sales
+3% to +5%
Operating Margin
10% to 10.5%
Earnings per Diluted Share
+8% to +11%
Capital Expenditures
~4% of Net Sales
Share Repurchases
1% to 2% Net Float Reduction
In 2025, the Company anticipates opening 90 new Tractor Supply
stores and approximately 10 new Petsense by Tractor Supply stores.
The Company updated its total addressable market to approximately
$225 billion from $180 billion and its long-term store count to
3,200, an increase of 200 locations.
These estimated growth rate targets do not constitute guidance
for any currently identifiable period and represent long-term
annual targets over time. Performance in any individual year may be
lower or higher than these targets.
5-for-1 Stock Split
The Board of Directors of Tractor Supply approved a 5-for-1
stock split of the Company’s issued common stock to make its stock
more accessible to team members and investors. Shareholders of
record as of December 16, 2024, will receive four additional shares
for each share held, which will be distributed after market close
on December 19, 2024. Tractor Supply’s shares are expected to begin
trading on a stock-split adjusted basis at the market open on
December 20, 2024. This represents the fifth stock split for
Tractor Supply since it went public more than 30 years ago in
1994.
Tractor Supply team members may purchase shares of the Company’s
stock at a 15% discount through the convenience of bi-weekly
payroll deductions. The employee stock purchase plan is a long-term
investment option that allows team members to share in Tractor
Supply's growth.
Barton commented, “Tractor Supply has a history of stock splits
to help our team members take advantage of our employee stock
purchase benefits, as well as appeal to a broader range of retail
investors. We believe that the stock split will make our common
stock more affordable and attractive to potential investors,
including our team members, and increase the liquidity of the
trading of the shares of our common stock.”
Webcast Video Event
Information
The event will be webcast live at IR.TractorSupply.com today,
Thursday, December 5, 2024 at 1 p.m. ET. A replay of the webcast
will also be available for viewing shortly after the event.
About Tractor Supply
Company
For more than 85 years, Tractor Supply Company (NASDAQ: TSCO)
has been passionate about serving the needs of recreational
farmers, ranchers, homeowners, gardeners, pet enthusiasts and all
those who enjoy living Life Out Here. Tractor Supply is the largest
rural lifestyle retailer in the U.S., ranking 293 on the Fortune
500. The Company’s more than 50,000 Team Members are known for
delivering legendary service and helping customers pursue their
passions, whether that means being closer to the land, taking care
of animals or living a hands-on, DIY lifestyle. In store and
online, Tractor Supply provides what customers need – anytime,
anywhere, any way they choose at the low prices they deserve.
As of September 28, 2024, the Company operated 2,270 Tractor
Supply stores in 49 states. For more information on Tractor Supply,
visit www.tractorsupply.com.
Tractor Supply Company also owns and operates Petsense by
Tractor Supply, a small-box pet specialty supply retailer providing
products and services for pet owners. As of September 28, 2024, the
Company operated 205 Petsense by Tractor Supply stores in 23
states. For more information on Petsense by Tractor Supply, visit
www.Petsense.com.
Forward-Looking
Statements
This press release contains certain forward-looking statements,
including statements regarding market share gains, value creation,
customer trends, new stores and distribution centers, property
development plans, return of capital, and long-term financial
guidance, including net sales, comparable store sales, operating
margin rates, net income, earnings per diluted share, capital
expenditures and plans, share repurchase, and sale-leaseback
transactions. All forward-looking statements are subject to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, are subject to the finalization of the Company’s
quarterly financial and accounting procedures, and may be affected
by certain risks and uncertainties, any one, or a combination, of
which could materially affect the results of the Company’s
operations. Forward-looking statements are usually identified by or
are associated with such words as “will,” “would,” “intend,”
“expect,” “continue,” “believe,” “anticipate,” “optimistic,”
“forecasted” and similar terminology. Actual results could vary
materially from the expectations reflected in these statements. As
with any business, all phases of our operations are subject to
facts outside of our control. These factors include, without
limitation, those factors discussed in the “Risk Factors” section
of the Company’s Annual Reports or Form 10-K and other filings with
the Securities and Exchange Commission, including our Quarterly
Report on Form 10-Q for the quarter ended September 28, 2024.
Forward-looking statements made by or on behalf of the Company are
based on knowledge of its business and the environment in which it
operates, but because of the factors listed above, actual results
could differ materially from those reflected by any forward-looking
statements. Consequently, all of the forward-looking statements
made are qualified by these cautionary statements and those
contained in the Company’s Annual Report on Form 10-K, quarterly
reports on Form 10-Q, and other filings with the Securities and
Exchange Commission. There can be no assurance that the results or
developments anticipated by the Company will be realized or, even
if substantially realized, that they will have the expected
consequences to or effects on the Company or its business and
operations. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. The Company does not undertake any obligation to release
publicly any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events, except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241205913081/en/
Mary Winn Pilkington (615) 440-4212 Joseph Underwood (615)
440-4658 investorrelations@tractorsupply.com
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