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Tractor Supply Company, a Tennessee-based rural lifestyle retailer with over 2,200 locations across the U.S. reported financial results for its fourth quarter and fiscal 2024.
Q4 2024
The company showed a Q4 net sales increase of 3.1%. Comparable store sales increased 0.6% with an average transaction size increasing by 2.3%.
The increase in net sales was driven by new store openings and growth in comparable store sales, driven by an increase in transaction size. The growth of consumable, usable and edible products was in line with the chain average as positive unit growth was offset by average unit price pressure.
Gross profit increased 2.8% from $1.29 billion to $1.33 billion year over year.
Selling, general and administrative expenses (SG&A) increased 5.5% from $958.8 million to $1.01 billion. The increase in SG&A expenses is attributed to planned growth investments, including higher depreciation and the onboarding of new distribution center employees.
Tractor Supply reported an operating income of $318.3 million in Q4 2024, down from $334.2 million year over year.
During Q4 2024, Tractor Supply opened 26 new locations and four Petsense by Tractor Supply stores.
Fiscal 2024 Results
Net sales for fiscal 2024 increased 2.2% from $14.56 billion to $14.88 billion and comparable store sales increased 0.2% compared to fiscal 2023.
Gross profit increased 3.2% from $5.23 billion to $5.40 billion year over year and its gross margin increased 34 basis points. SG&A expenses, including depreciation and amortization, increased 4.8% to $3.93 billion from $3.75 billion in fiscal 2023.
Operating income for fiscal 2024 decreased 0.8% from $1.48 billion to $1.47 billion and net income decreased 0.5% from $1.11 billion to $1.10 billion.
During fiscal 2024, the Company opened 80 new Tractor Supply stores and 11 new Petsense by Tractor Supply stores and closed three Petsense by Tractor Supply stores.
“In 2024, our business performed well in a challenging retail environment, and we made significant progress on our Life Out Here strategy,” says Hal Lawton, president and CEO of Tractor Supply. “We achieved numerous milestones during the year, including having about half of our stores in the Project Fusion layout and opening our tenth and largest distribution center. The fundamentals of our business remain strong with ongoing market share gains, record Neighbor’s Club members, digital sales in excess of one billion dollars and high-return new store openings. I extend my sincere gratitude to the more than 50,000 team members for their steadfast dedication to upholding our mission and values and supporting their communities.”
Tractor Supply also released its financial outlook for 2025. For fiscal 2025, the company expects:
- Net sales to increase 5-7%
- Comparable store sales to increase 1-3%
- Operating margin rate to be 9.6-10%
- Net income to be $1.12-$1.18 billion
Tractor Supply also plans to open around 90 new stores, 10 new Petsense by Tractor Supply locations and is currently in the process of building its 11th distribution center.
