Tractor Supply Company (TSCO) has reached a blossoming milestone with the grand opening of its 500th Garden Center in Lowell, IN. This marks a surge in gardening popularity and highlights the company's commitment to rural lifestyles. Just four years ago, in July 2020, Tractor Supply planted the first seed of its Garden Center initiative in Rome, GA. Since then, the program has blossomed remarkably. The company's footprint now spans across 41 states, boasting a network of 500 dedicated Garden Centers. This i ...

Company Overview - Tractor Supply Company (TSCO) is a leading rural lifestyle retailer in the US, operating over 2,400 stores across 49 states, targeting customers such as recreational farm owners, ranchers, and pet owners [8] - The company offers more than 300,000 products, including livestock and equine feed, companion animal products, seasonal and recreational items, and hardware tools [11] - TSCO has a strong loyalty program, the Neighbor's Club, with over 34 million members, and sources 90% of its merchandise from 400 core vendors [5][12] Financial Performance - TSCO's net sales increased by 2.9% in Q1 2024, with comparable store sales rising by 1.1% and online sales growing by double-digits [19] - The company reiterated its 2024 guidance, expecting net sales of $14.7B to $15.1B and comparable store sales growth of -1% to +1.5% [21] - TSCO has a strong balance sheet with a 2024E net leverage ratio of less than 1x EBITDA and an investment-grade rating of BBB [27] Strategic Initiatives - TSCO is expanding its distribution network, with its tenth and largest distribution center in Maumelle, Arkansas, expected to improve store service levels and reduce freight costs [21] - The company uses sale-leaseback deals to free up capital for investments, with plans to continue this strategy for the next 7 to 10 years [29] - TSCO's loyalty program and supply chain advancements highlight its commitment to customer satisfaction and future growth [5] Shareholder Value - TSCO has returned 42% since October 2023 and has a ten-year return of 409%, significantly outperforming the S&P 500 [3][6] - The company has consistently increased its dividend, with a 6.8% hike in Q1 2024, marking its 15th consecutive annual increase [23] - TSCO has bought back more than a fifth of its shares over the past decade, contributing to its impressive stock price performance [25] Market Position and Trends - TSCO benefits from the post-pandemic migration to rural areas, driven by work-from-home opportunities and cost-of-living differences [7] - The company's focus on rural markets provides resilience during economic downturns, with a loyal customer base and steady demand [4] - TSCO's real estate strategy and sale-leaseback deals position it well for growth, with Agree Realty (ADC) being a major beneficiary of its leaseback transactions [29][31] Challenges and Risks - Elevated interest rates and sticky inflation are pressuring consumer-focused corporations, with consumer credit increasing by $240B since pre-pandemic levels [13][14] - Consumer sentiment has worsened, with spending diverging between higher-income and lower-income consumers [15][16] - TSCO's current blended P/E ratio of 27.8x is above its long-term normalized P/E ratio, indicating a potentially lofty valuation [37]

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Tractor Supply (TSCO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Tractor Supply is a member of our Retail-Wholesale group, which includes 212 different companies and currently sits at #10 in the Zacks Sector Rank. ...

The resilient rural lifestyle retailer dominates its space and has a lot of room to grow. With the S&P 500 hitting record highs this week, it's becoming increasingly difficult to find attractive stocks to buy. Many stocks simply look either fully valued or overvalued. But a close look reveals that there are still some stocks worth buying -- even after their recent run-up. One stock that still looks attractive despite already rising 15% this year is Tractor Supply (TSCO 0.09%). Sure, the dividend-paying stoc ...

REDMOND, Ore., May 16, 2024 (GLOBE NEWSWIRE) -- Expion360 Inc. (NASDAQ:XPON) ("Expion360" or the "Company"), an industry leader in lithium-ion battery power storage solutions, announced a new e- commerce retail partnership with Tractor Supply Company ("Tractor Supply"), the largest rural lifestyle retailer in the United States, to offer Expion360 products online for shipment to customers in 49 states. For more than 85 years, Tractor Supply has been passionate about serving the needs of recreational farmers, ...

Tractor Supply Company (TSCO) has reported first-quarter 2024 results, wherein the bottom line beat the Zacks Consensus Estimate while sales marginally lagged the same. Both metrics increased year over year. Results benefited from higher comparable store sales (comps) performance and new store openings.Tractor Supply’s earnings of $1.83 per share surpassed the Zacks Consensus Estimate of $1.70. In the year-earlier quarter, the company reported earnings of $1.65 per share, up 10.9% year over year.Net sales g ...

Financial Performance - Net sales increased by 2.9%[18], reaching $3.4 billion[18] - CUE performance aligned with overall company results at 1.1%[6] - Gross margin expanded by 50 bps to 35.5%[19] in Q1 2024 compared to 28.2%[19] in Q1 2023 - Operating margin increased by 34 bps from 7.4%[8] in Q1 2023 to 7.8%[8] in Q1 2024 - Net income grew by 8.2%[8], from $183 million[8] in Q1 2023 to $198 million[8] in Q1 2024 - Diluted EPS increased by 10.9%[8], from $1.65[8] in Q1 2023 to $1.83[8] in Q1 2024 Expenses - SG&A expenses as a percentage of net sales experienced 16 bps of deleverage[7], with the percentage for Q1 2024 being 36.0%[7] Guidance - The company reiterated its 2024 guidance for comparable store sales, projecting a range of (1.0%) to +1.5%[22] - The company reiterated its 2024 guidance for diluted earnings per share, projecting a range of $9.85 to $10.50[22] Other Updates - Continued construction on the 10th and largest distribution center in Maumelle, AR[20]

Financial Data and Key Metrics Changes - The company reported a net sales growth of 2.9% and comparable store sales growth of 1.1% in the first quarter [132] - Diluted earnings per share increased by 10.9% to $1.83, with net income rising by 8.2% [114][132] - Gross margin rate improved by 50 basis points to 36%, driven by lower transportation costs and disciplined product cost management [142] Business Line Data and Key Metrics Changes - Big ticket categories showed positive growth after nearly two years of pressure, with broad-based strength across seasonal categories [7][22] - Digital sales returned to double-digit growth, with increased visits and improved conversion rates [7] - The Neighbor's Club program continues to represent the majority of sales, with enhancements leading to positive customer engagement [88][89] Market Data and Key Metrics Changes - The company experienced positive migration trends to rural markets, with rural America gaining population in 2023 [2][84] - Average unit retail was impacted by modest product deflation of about 1%, but unit growth and share gains were encouraging [10] - The company maintains a market share of about 20% in bagged livestock feed, consistently outperforming the market [107] Company Strategy and Development Direction - The company is focused on its "Life Out Here" strategic priorities, which are on track and delivering expected results [149] - There is a commitment to enhancing customer service and leveraging technology, such as Tractor Vision, to improve operational efficiency [17][152] - The company plans to open its tenth distribution center, which is expected to enhance inventory positioning and reduce freight costs [137] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, noting strong consumer spending despite inflation concerns [84][102] - The company anticipates continued strength in big ticket and seasonal sales, with expectations for second quarter comparable sales in line with full year outlook [116] - Management highlighted that the transition from inflation to disinflation is progressing as anticipated, with no additional downward pressures expected [103] Other Important Information - The company repurchased approximately 0.5 million shares and paid quarterly cash dividends totaling $118.8 million, marking the 15th consecutive year of dividend growth [12] - The company is committed to maintaining high in-stock levels and a healthy balance sheet, with a leverage ratio of around 2 times [13] Q&A Session Summary Question: Can you discuss the big ticket improvement? - Management noted that big ticket sales improved significantly, particularly in categories like riding lawn mowers and outdoor power equipment, with a positive trend continuing into Q2 [22][183] Question: How is the pet food category performing? - Management acknowledged a slowdown in the pet food category due to moderation in pet ownership and stagnant pricing, but remains optimistic about long-term growth [90][61] Question: What are the expectations for gross margin in the back half of the year? - Management indicated that while gross margin expansion is expected to continue, the second half may face tougher comparisons due to previous inflationary benefits [171][147] Question: How is the Neighbor's Club program performing? - Management reported strong engagement and growth in the Neighbor's Club program, with recent changes leading to positive customer responses [168][196] Question: What are the expectations for the second quarter? - Management expects the second quarter to be similar to the first, with continued strength in big ticket and seasonal categories [194][165]

For the quarter ended March 2024, Tractor Supply (TSCO) reported revenue of $3.39 billion, up 2.9% over the same period last year. EPS came in at $1.83, compared to $1.65 in the year-ago quarter.The reported revenue represents a surprise of -0.05% over the Zacks Consensus Estimate of $3.4 billion. With the consensus EPS estimate being $1.70, the EPS surprise was +7.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Tractor Supply (TSCO) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.70 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.65%. A quarter ago, it was expected that this retailer for farmers and ranchers would post earnings of $2.22 per share when it actually produced earnings of $2.28, delivering a surprise of 2.70%.Over the last four ...