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Net sales for Tractor Supply Company during the third quarter of 2024 increased 1.6% to $3.47 billion year over year.
The increase in net sales was driven by new store openings. Comparable store sales declined 0.2% year over year, driven by a comparable average transaction count, offset by a comparable average ticket decrease. Comparable store sales results reflect continued strength in big ticket categories, partially offset by declines in year-round discretionary categories.
“We delivered on our expectations for the third quarter amid a tepid retail sales environment while advancing our Life Out Here strategy,” says Hal Lawton, president and chief executive officer of Tractor Supply. The fundamentals of our business remain strong with ongoing market share gains. With nearly 50% of our stores in Project Fusion layout and more than 550 garden centers, we continue to invest in our stores, supply chain and capabilities that build customer loyalty and elevate the standard for our sector. My thanks and appreciation go out to the entire Tractor Supply team for their engagement and commitment to serving Life Out Here, especially during this challenging hurricane season.”
Gross profit increased 3.2% to $1.29 billion from $1.25 billion in Q3 of 2023. The gross margin rate increase was primarily attributable to ongoing lower transportation costs along with disciplined product cost management and the continued execution of an everyday low price strategy.
Selling, general and administrative expenses increase 6.2% to $965.8 million from $909.6 million in Q3 of 2023. As a percentage of net sales, these expenses increased 27.8% year over year. The increase is attributed to planned growth investments during the onboarding of a new distribution center.
Operating income was $324.6 million in Q3 of 2024, an decrease from $340.9 million in Q3 of 2023. Net income decreased 5.3% to $241.5 million from $255.0 million. Tractor Supply Company also opened 16 new stores during the quarter.
Tractor Supply also announced the acquisition of Allivet, an online vet pharmacy.
“We remain very excited about the future for Tractor Supply to better serve our customers, capture market share, generate consistent, profitable growth and create ongoing long-term value for our shareholders,” Lawton says. “Today’s announcement of our acquisition of Allivet, a leading online pet pharmacy, is a great example of unlocking new opportunities for growth. We look forward to bringing pet Rx to our 37 million Neighbor’s Club members. As we look towards the back half of the decade, the team is energized to continue to capitalize on the many significant opportunities within our Life Out Here strategy and we look forward to sharing more details in the coming months.”
