The Nugget
- Tractor Supply Company reported solid Q1 2024 results with 2.9% net sales growth to $3.39B, 1.1% comparable store sales increase, and 10.9% EPS growth to $1.83, despite a challenging macro environment
Make it stick
- 🚜 Tractor Supply continues to gain market share and see strength in big ticket sales
- 💪 The company remains confident in its 2024 outlook given ongoing share gains and scaling of its "Life Out Here" strategy
- 💰 Tractor Supply returned $236.2M to shareholders via share repurchases and dividends in Q1
Key insights
Financial Performance
- Net sales increased 2.9% to $3.39B, driven by new store openings and 1.1% comparable store sales growth
- Gross profit increased 4.4% to $1.22B with gross margin expanding 50 bps to 36.0%
- Operating income grew 7.6% to $263.1M
- Diluted EPS increased 10.9% to $1.83
Comparable Store Sales Drivers
- Comparable transaction count increased 1.3%
- Comparable average ticket declined 0.2%
- Strength in seasonal merchandise was partially offset by declines in year-round discretionary categories
- Consumable, usable and edible products performed in line with overall comp growth
Operational Updates
- Opened 17 new Tractor Supply stores and 4 new Petsense stores in Q1
- Gained market share and saw positive customer trends
- Continued scaling its "Life Out Here" strategy
- Executed ongoing cost control and productivity improvements
2024 Outlook Reiterated
- Net sales of $14.7B to $15.1B
- Comparable store sales of -1.0% to +1.5%
- Operating margin of 9.7% to 10.1%
- EPS of $9.85 to $10.50
- Plans to open ~80 new Tractor Supply stores and 10-15 new Petsense stores
Key quotes
- "We saw several positive signs in our business during the quarter, including ongoing market share gains, transaction growth and strength in big ticket sales." - Hal Lawton, CEO
- "We remain confident in our outlook for 2024 given our share gains and the continued scaling of our Life Out Here strategy." - Hal Lawton, CEO
This summary contains AI-generated information and may have important inaccuracies or omissions.